EUR/USD rallies above 1.0900 as ECB holds rates steady in July decision

EUR/USD surged 0.5% to 1.0920 following the European Central Bank's decision to maintain interest rates unchanged at the July monetary policy meeting. The pair gained approximately 55 pips as markets interpreted the ECB's stance as potentially more hawkish than anticipated, with officials likely maintaining their vigilance on persistent inflation pressures. The decision aligned with market expectations, but the accompanying statement suggested the central bank remains committed to its current restrictive policy stance. Technical indicators show EUR/USD breaking above the 1.0900 psychological resistance level, with momentum indicators turning bullish. The next resistance lies at 1.0950, coinciding with the 50-day moving average. Support has formed at 1.0880, representing the pre-ECB announcement level. Traders are now focusing on ECB President Lagarde's press conference for additional guidance on the future policy trajectory and any hints about September's meeting.