EUR/USD has made the positive moment upon recent bounce in the US Dollar and are expecting the ECB monetary policy.  The European Central Bank’s (ECB) new strategy on inflation targeting allows more flexibility and preparedness for a future crisis, the central bank’s policymaker Yannis Stournaras said in an opinion column in Greece’s Kathimerini newspaper.

European Central Bank President Christine Lagarde told investors to prepare for new guidance on monetary stimulus in 10 days, and signaled that fresh measures might be brought in next year to support the euro-area economy after the current emergency bond program ends. Speaking to Bloomberg Television days after the ECB raised its inflation goal to 2% and acknowledged it may overshoot the target, Lagarde said the July 22 Governing Council session — previously expected to be relatively uneventful — will now have “some interesting variations and changes.” And also said  she sees policy change in July and possible 2022 measures. ”PEPP may be followed by a transition into a new format,” she added.

The ECB’s 25-member Governing Council agreed in June to continue running emergency bond purchases at an elevated pace this quarter, though the account of the meeting showed diverging views. She also agreed that the new inflation target “might take a little longer” to reach, but said the more important issue is “the acceptance and the tolerance” that a transitory and moderate inflation overshoot may be needed as part of the commitment to restoring price stability.

Starting out a fresh week, covid concerns remain unabated, as Sydney extends the lockdown restrictions amid escalating outbreaks. At the same time The European Union says it now has enough doses to meet its goal of vaccinating 70 per cent of the region’s adult population by the end of this month.  Meanwhile, markets remain cautious ahead of the US inflation and Fed Chair Jerome Powell’s testimony on the semi-annual Monetary Policy Report released last Friday.

EUR/USD 4 Hour Chart:

Support: 1.1840 (S1), 1.1804 (S2), 1.1784 (S3).

Resistance: 1.1896 (R1), 1.1916 (R2), 1.1952 (R3).

Amidst this EURUSD remains bullish moment upon the Lagarde talk and Greenback recent bounce. We expect a bullish trend for EURUSD.