Nothing new here as the ECB is more focused on the recovery path rather than the hit taken by the economy in Q2 as a result of lockdown measures and the virus fallout.
If anything, we can only perhaps expect the ECB to provide more clues on policy outlook in late Q3 and Q4 this year when there is a better sense of how the recovery is panning out.
The likely first step will be determining whether or not they see fit to fully utilise their PEPP envelope by the middle of next year. But for now, there's still a lot of time and room before we reach such a juncture in their policy decision-making.
As I discussed in the previous review, the EUR is in contraction-sideways mode at the price of 1,1813 but with potential for the downside rotation.
Further Development
Analyzing the current trading chart of EUR, I found that buyers and sellers agreed at the price of 1,1813 but that there is the breakout of the rising trendline in the background, which is indication for further potential down cycle.
1-Day relative strength performance Finviz
Based on the graph above I found that on the top of the list we got Lean Hogs and Lumber today and on the bottom Gasoline RBOB and Orange Juice.
Key Levels:
Resistance: 1,1840
Support levels: 1,1786 and 1,1760.