President of the European Central Bank Mario Draghi said yesterday that the stable inflation profile hides the "relatively energetic" increase in core inflation and repeated its "confidence that wage growth will continue." For a dovish central banker, such words could sound surprisingly and their weight It could be significant, provided that it would signal an imminent change in monetary policy, but there will be no such change, as Draghi repeated the previous ECB statement that interest rates will not be changed at least "all summer" next year. a complicated verbal construction must be used to draw attention to a little developmental topic? The problem is that Draghi did not talk about what inflation is currently, but what the central bank expects in its forecasts, hence I consider it quite a growing scale of EUR response after the words president and more It is understandable for me to quickly extinguish this movement in the following hours. At the same time, this shows where the sensitivity of the market is now - any pretext to justify the increase in EUR is used diligently, especially if it allows a revision of expectations regarding the future ECB strategy. I have concerns as to whether the market is building a position on false assumptions, but for the EUR it will be a problem only when these assumptions will be questioned.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has made another marginal higher high at the level of 1.1813 and then come back towards the range zone. The immediate support is seen at the level of 1.1752 - 1.1746. The key technical support is seen at the level of 1.1720. Please notice the price is still moving inside of the channel.
