EUR/USD back to the positive territory near 1.1420

• EUR/USD regains composure above the 1.14 mark post-ECB.
• The ECB left the monetary status and stimulus package unchanged.
• US Retail Sales expanded 7.5% MoM in June, more than expected.

The buying interest have returned to the single currency and is now lifting EUR/USD back to levels above 1.14 the figure as the ECB event is underway.

EUR/USD bid post-ECB, looks to Lagarde

EUR/USD managed to leave behind the initial pessimism, including a move to fresh daily lows in the 1.1380 region earlier in the session and is now flirting with daily tops in the 1.1420/30 band.

The euro has also regained traction after the ECB matched previous estimates at its meeting on Thursday, leaving intact its benchmark rates and the PEPP programme at €1.35 trillion.

At her subsequent press conference, President C.Lagarde stressed that recent data in the region show signs of recovery albeit still at levels below pre-pandemic ones. The outlook, added Lagarde shows a high degree of uncertainty

Lagarde also reiterated that the recovery is forecasted to be uneven across the region, while the GDP is expected to recovery in Q3 and inflation is predicted to remain subdued in the next months and to pick up pace in 2021.

Regarding the upcoming meeting to decide over the €750 billion recovery fund, Lagarde hinted at the likeliness that it will be formed by a mix of loans and grants (as originally announced).

What to look for around EUR

EUR/USD clinched fresh multi-month tops in the 1.1450 region on Wednesday, opening the door to a potential move to 2020 peaks near 1.15 the figure in the near-term. As always, upbeat risk appetite trends continue to support the momentum around the euro in combination with the current recovery in the euro zon. Also supportive of a strong euro appears the solid stance of the current account in the euro area.

EUR/USD levels to watch

At the moment, the pair is losing 0.04% at 1.1406 and faces the next support at 1.1186 (61.8% Fibo of the 2017-2018 rally) seconded by 1.1168 (monthly low Jun.19) and finally 1.1147 (high Mar.27). On the other hand, a breakout of 1.1452 (monthly high Jul.15) would target 1.1495 (2020 high Mar.9) en route to 1.1514 (high Jan.31 2019).