EUR/USD sticks to modest gains above 1.1800 handle after ECB

   •  ECB leaves rates, QE unchanged.
   •  Does little to help build on upbeat EZ PMIs-led up-move.
   •  Post-meeting presser eyed for fresh impetus.

The EUR/USD pair reversed an early European session dip to the 1.1800 neighborhood but struggled to gain any follow through traction post-ECB announcement.

The pair held with modest gains near the 1.1830-35 region after the ECB left its main refinancing rate, marginal lending facility and deposit facility rate at 0.00%, 0.25% and -0.40%, respectively.

The central bank also left its asset purchase target (QE) at €30 billion until Sept 2018, or beyond if needed, and reiterated that QE can be increased in size, duration if outlook worsens. 

There was nothing substantial the ECB statement to provide any fresh impetus, with today's upbeat EZ PMI prints supportive of the pair's modest daily gains.

Investors now look forward to the post-meeting press conference, where updated projections for economic growth and inflation would influence the pair’s movement through the NY trading session. 

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: "the Momentum indicator maintains its bullish slope at fresh weekly highs, while the RSI hovers around 58 after correcting from near overbought readings. A break above the mentioned resistance (1.1830) should result in an advance up to 1.1870 initially, where selling interest has been strong in the previous week, while beyond it,  the rally could extend up to the 1.1900/10 price zone."

"Below 1.1790, on the other hand, the risk turns towards the downside, with next supports at 1.1750 and 1.1710" she adds.