EUR/USD: down -0.10% on the day at 1.0628, but remains in recovery mode post ECB ahead of Trump's inauguration

Currently, EUR/USD is trading at 1.0628, down -0.10% on the day, having posted a daily high at 1.0678 and low at 1.0589.

EUR/USD is in recovery mode, rallying from the aforementioned lows while the ECB keeps rates on hold and sticks to its dovish bias.

"As expected, the ECB kept all interest rates on hold at today’s meeting," noted analysts at ING Bank, adding, "At the same time, the ECB continues its dovish bias, pointing to a possible stepping up of QE if need be. Increased German unease about rising inflation rates was elegantly tackled by ECB president Draghi during the Q&A session."

While Trump calls for a softer dollar and the ECB remains a long way from tapering, the euro can attract a bid here and continue in its reversal of the December sell off from 1.0860 territory. However, volatility is scheduled to pick up according to Boris Schlossberg, Managing Director and Founding Partner of BK Asset Management who was in a discussion in today's Panel around Trump, of which can be viewed below.

EUR/USD levels

With spot trading at 1.0628, we can see next resistance ahead at 1.0630 (Yesterday's Low), 1.0638 (Daily Open), 1.0642 (Hourly 20 EMA), 1.0648 (Hourly 100 SMA) and 1.0661 (Daily Classic PP). Support below can be found at 1.0615 (Hourly 200 SMA), 1.0607 (Daily Classic S1), 1.0600 (Weekly Low), 1.0592 (Weekly Classic PP) and 1.0589 (Daily Low).