EUR/USD: Poised to extend its advance on a break above 1.2080

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The EUR/USD pair peaked this Thursday at 1.2058, holding nearby as the European Central Bank left rates unchanged as widely expected. According to FXStreet’s Chief Analyst Valeria Bednarik, bulls are waiting for a boost from Lagarde.

US employment-related data beat expectations

“The ECB has decided to leave the interest rates on the main refinancing operations, the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50%, respectively, as expected. Lagarde explains that policymakers expect PEPP to continue at a significantly higher pace than at the beginning of the pandemic.”

“The US has published Initial Jobless Claims for the week ended April 16, which contracted to 547K, better than anticipated. Stocks hold on to modest gains and aim higher after the news, with US indexes set to open near weekly highs.”

“The EUR/USD pair has chances of extending its advance, according to near-term technical readings. The 4-hour chart shows that a bullish 20 SMA continues to guide the pair, as short-lived slides below the level are quickly attracting buying interest. 

“The pair needs to surpass the weekly high at 1.2079 to gather enough momentum to extend its advance.”

 

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