- The pair comes up after hitting fresh 2019 lows near 1.1180.
- The dovish tone from the ECB hurt the sentiment around EUR.
- US NFP next of relevance in the docket (180K exp.).
After bottoming out in the 1.1180 region on Thursday, EUR/USD managed to regain some composure and reclaim the 1.1200 handle early today in the European morning.
EUR/USD weaker post-ECB, looks to NFP
The bearish mood around the single currency has picked up pace in the wake of the dovish tone from the ECB at its meeting yesterday, dragging spot to fresh 2019 lows in levels last traded in late June 2017 around 1.1180.
EUR was hurt after the central bank re-assessed its forward guidance on Thursday, re-introducing TLTROs (TLTRO-3) and confirming that interest rates will remain at current levels for the rest of the year.
In addition, and fuelling the downside in spot, the new ECB forecasts for growth and inflation in the region for the next years were larger than expected.
There will be no significant releases in Euroland today, whereas the publication of Non-farm Payrolls for the month of February will grab all the attention across the ocean.
What to look for around EUR
The sentiment around the shared currency is expected to remain under heavy pressure as market participants continue to adjust to the fresh dovish stance from the ECB and the prospects of no hikes at least until Q3-Q4 2020. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be on the potential increase of the populist option among members.
EUR/USD levels to watch
At the moment, the pair is gaining 0.06% at 1.1199 and a breakout of 1.1314 (21-day SMA) would target 1.1375 (55-day SMA) en route to 1.1419 (high Feb.28). On the other hand, the next support aligns at 1.1176 (2019 low Mar.7) followed by 1.1118 (monthly low Jun.20 2017) and finally 1.1021 (high May 8 2017).
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