EUR/USD turned bearish in January after being bullish since March last year. The price fell below 1.20, which turned into a resistance area. Earlier this week the price reversed down at 1.20 after a retrace higher and it did that again today, after the ECB (European Central Bank) president Lagarde held a press conference, confirming the increase in the PEPP programme.

Remarks by ECB president, Christine Lagarde

• Step-up in PEPP will become more visible over time
• Risks surrounding euro area growth outlook have become more balanced
• Downside risks remain in the near-term
• There is no room for complacency
• ECB to continue monitoring developments in the euro exchange rate
• PEPP will be implemented flexibly according to market conditions
• Step-up in the run-rate of PEPP will become visible when ascertained over longer time intervals (short-term disrupted by noise, such as lumpy redemptions)
• If favourable financing conditions can be maintained, don’t need to use full PEPP envelope if it is not exhausted