EUR/USD Current price: 1.0605
The American dollar was trading heavily ahead of the ECB, with the EUR/USD pair reaching the 1.0800 level ahead of the announcement, and skyrocketing to 1.0873, after the Central Bank unveiled its decision to extend QE program to December 2017, but at a slower pace, to EUR60bn starting April 2017. The notion that such reduction was the beginning of the end of the stimulus program was behind EUR gains, although the movement was short lived, with the price retreating ahead of Draghi's speech. His clearly dovish words sent the pair down to sub 1.0600, where the pair currently trades. Two things out-stand from Draghi's announcement: the first, is that the adjusted the parameters of its asset purchase program by decreasing the minimum remaining maturity for eligible securities from two years to one year and that the bank could now buy securities with a yield to maturity below the interest rate on the ECB’s deposit facility. The second, is that in the middle of the press conference, he remarked that tapering was not discussed, hammering the final nail into the common currency's coffin.
Currently hovering around 1.0600, the EUR/USD pair is back in the bearish path, barely 100 pips away from this year´s low. Technically, the spike up briefly surpassed the 38.2% retracement of the latest daily decline, but the pair is now trading back below the 23.6% retracement of the same slide at 1.0690, and in the 4 hours chart, its below all of its moving averages, while technical indicators have decelerated near oversold territory, but maintain the risk towards the downside anyway. The immediate support is now the 1.0580/90 region, with a break below it opening doors for further slides towards the 1.0500/20 price zone this Friday, with the dollar underpinned by hopes that the US Federal Reserve will raise rates next week
Support levels: 1.0585 1.0540 1.0500
Resistance levels: 1.0650 1.0690 1.0740
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD: The first downside target is seen at the 1.2600–1.2605 zone
GBP/USD trades on a weaker note around 1.2620 during the early European session on Friday. The decline of Pound Sterling is backed by the growing speculation that the Bank of England will begin the rate-cut cycle this year.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.