Global macro overview for 22/07/2016:
The European Central Bank decided to leave interest rates unchanged at the level of 0.0%, together with the deposit facility rate at -0.40% and marginal lending facility at 0.25%. During the press conference, ECB head Mario Draghi signaled that he is prepared to add more monetary stimulus later in the year if needed. Moreover, he mentioned that the Brexit had added to "headwinds" for the eurozone's economy, which, as a result, increased geopolitical uncertainty. In conclusion, the ECB meeting and interest rate decision were in line with market expectations, and Draghi reiterated the well-known issues, not really adding anything surprising or new.
Let's now take a look at the EUR/USD technical picture on the daily time frame after the interest rate decision. Not much directional movement can be observed, but the price is trading below all moving averages and below the trend line. This kind of price action suggests more downside pressure. The next support is seen at the level of 1.0910.
