EUR/USD turns negative, back below 1.0900 post-ECB

• EUR/USD trims gains and drops to the sub-1.0900 region.
• ECB left its key rates unchanged, matching consensus.
• Investors now look to Lagarde’s press conference.

The buying bias in the single currency fizzled out and forced EUR/USD to return to the negative ground after climbing as high as the 1.0920 region earlier on Thursday.

EUR/USD now focuses on Lagarde

EUR/USD now looks offered after the ECB left intact the interest rate on the main refinancing operations, the interest rate on the marginal lending facility and the deposit facility at 0.00%, 0.25% and 0 -0.50%, respectively.

The ECB reiterated that any adjustment to the interest rate will come some time after the end of its net purchases. The central bank confirms that the APP is expected to conclude at some point in Q3.

Moving forward, market participants will now closely follow the usual press conference by Chairwoman Lagarde and the subsequent Q&A session.

EUR/USD levels to watch

So far, spot is down 0.15% at 1.0871 and the break below 1.0808 (monthly low April 13) would target 1.0805 (2022 low March 7) en route to 1.0766 (monthly low May 7 2020). On the flip side, the next up barrier aligns at 1.0933 (weekly high April 11) seconded by 1.1000 (round level) and finally 1.1120 (55-day SMA).