ECB President Draghi dealt EUR/USD's recent rally a bit of a blow.
Though his comments in the post-meeting presser were initially welcomed by bulls as he expressed confidence about inflation convergence even after APP, EUR/USD quickly sank when Draghi said reinvestment had not been discussed and there was no need to modify guidance on rates.
Draghi also reaffirmed that rates will be on hold through the summer of 2019.
EUR/USD bulls hit the exit button and the pair gave up all the day's gains as DE-U.S.
yield spreads increased the greenback's yield advantage and slipped below the converging 10 and 21-DMAs.
Draghi gave EUR/USD bulls little to latch onto so they now have to look to the dollar side of the equation for help.
The dollar has been struggling to gain lately even as U.S. yields have risen.
Positioning and some recent weak housing data have likely helped temper the dollar's rally.
U.S. GDP and next week's Fed meeting are key for EUR/USD longs.
They'll need a downside GDP surprise and a less hawkish Fed in order to see EUR/USD gain and possibly test 1.1850/60 resistance.
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