The vote of confidence in the ECB | 18 Junio 2020

EURUSD trading plan:

The European Central Bank will announce the results of its latest long-term lending operation, which is the first at which banks can borrow at the new lower limit of as low as 1%. Given the doubts over the effectiveness of negative interest rates, a high take-up would constitute a vote of confidence in the ability of the ECB to keep supporting the economy through monetary policy. U.S. Federal Reserve Chairman Jerome Powell suggested overnight that although the U.S. economy is starting to recover from the worst of the COVID-19 impact, it could need more help considering the rising number of cases and with around 25 million unemployed Americans. This is a positive signal for the European currency!

Trading recommendation: Buy 1.1240 and take profit 1.1301.