EUR/USD drops to fresh session lows, near 1.1210 as the ECB presser gets underway

The EUR/USD pair maintained its bearish bias and dropped to fresh session lows during the ECB President Mario Draghi’s opening statement at the post-meeting press conference. 

Spot ran through some fresh offers after the central bank lowered its official projections for inflation through 2019 and reiterated readiness to act further if outlook worsens, or if financial conditions become inconsistent with progress towards attainting a sustainable inflation trajectory. 

The pair failed to find any support from Draghi’s comments that Euro-zone economy has expanded faster than forecast and the same was reflected in upward revision of the region's economic growth outlook through 2019.

Earlier, the central bank’s governing council decided to leave key benchmark rates and QE program unchanged and removed the language that rates could go lower in the future, from its policy statement. Market participants, however, still seemed disappointed in absence of any clues over timing of policy normalization and hence, continued dumping the shared currency.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The short term picture is neutral-to-bearish, with the price a few pips below its 20 SMA and technical indicators heading marginally lower around their mid-lines, although direction will depend on sentiment. Below 1.1200 on a dovish ECB, the next intraday supports come at 1.1160 and 1.1120, while beyond 1.1300, on a positive surprise, 1.1345 and 1.1390 as the resistances/probable bullish targets for this Thursday."