The EUR/USD increased its volatility due to the ECB. Although, in general the ECB did not reveal new information. Due to that reason the rate was back to previous levels in a couple of hours after the ECB press conference.
Meanwhile, it is more noteworthy to mention that the high volatility of the EUR/USD remained in the borders of an ascending channel pattern.
The European Single Currency depreciated against the US Dollar, following the EU Main Refinancing Rate release on Wednesday at 11:45 GMT. The EUR/USD exchange currency rate lost 3 pips or 0.02% during a minute, right after the release. The European Single Currency continues trading at the 1.2760 area against the US Dollar.
The European Central Bank released the EU Main Refinancing Rate data in line with expectations of 0.00%.Note, that the Monetary Policy Statement was released at the same time with the ECB Main Refinancing Rate.
"The Governing Council now expects the key ECB interest rates to remain at their present levels at least through the end of 2019, and in any case for as long as necessary," the ECB said in a statement, reaffirming its interest rate guidance.
Only US PPI left this week
On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.All events are covered by Dukascopy Analytics. The covers of events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
EUR/USD hourly chart's review
After the high volatility caused by the ECB Press Conference on Wednesday on Thursday the EUR/USD continued to make attempts to pass resistance levels just below the 1.1300 level.If the rate passes the resistance at 1.1290 and 1.1300, the pair will surge, as it will have no technical resistance as high as the 1.1325 level where a weekly pivot point is located at.
On the other hand, the rate might continue to trade sideways until the support of the 55-hour SMA approaches it and pushes through the resistance levels.
Hourly Chart
The daily chart reveals that the rate is surging, as it was expected previously. The surge has started after the rate found support in the 1.1200 level at the start of April
In general, the pair is expected to gradually reach the 55-day simple moving average. The simple moving average was located at the 1.1325 level, where it was strengthened by the weekly R3.
Daily chart
Despite the ECB announcements most of the open EUR/USD positions on the Swiss Foreign Exchange were still short on Thursday. Namely, 72% of all of the open volume was short during the morning hours.
In general, as the ECB confirmed that it is continuing its money creation scheme why the US Fed keeps their policy unchanged, the EUR/USD will go down on the larger scale.
Combine that with the short term surge, after which a decline should take place, it is clear why most traders are short on the pair.
Moreover, trader set up pending orders in the 100-pip range had become bearish. Namely, 52% of all orders were set to sell.