EUR/USD

The Euro spiraled lower and retested 2019 low at 1.0926 (posted on 3 Sep) after European central bank met all expectations of the markets regarding action taken to fight negative impact from weakening EU's economy and low inflation, as well as outside bloc negative factors, US/China trade conflict and Brexit.
The ECB cut interest rate by 10 basis points to -0.5%, slightly disappointing market expectations for stronger cut, with current rate expected to stay at current or lower levels until inflation starts to pick up and returns close to 2% projection.
The central bank will re-introduce bond buying program, in less than one year after the previous scheme stopped, at monthly pace of 20 billion Euros, starting 1 Nov. but surprised markets with decision to leave the scheme open as long as it is necessary.
The central bank soured the sentiment further by lowering growth and inflation forecasts for the period until 2021, in comparison to their last estimations in June.
Euro's fresh bearish acceleration found footstep at key 1.0926 support and price action may hold above until markets fully digest the outcome of ECB's policy meeting, but sentiment remains negative and bias remains with bears, looking for breach of 1.0926/00 pivots that would expose support at 1.0863 (Fibo 76.4% of 1.0940/1.2555, Jan 2018 – Feb 2018 ascend).
Falling 10DMA (1.1010) reinforces initial 1.10 resistance zone, with extended rebound from today's low, required to stay below falling 20DMA (1.1049) to maintain bearish tone.

Res: 1.1000; 1.1010; 1.1049; 1.1068
Sup: 1.0926; 1.0900; 1.0863; 1.0800

EURUSD

 

Interested in EUR/USD technicals? Check out the key levels

    1. R3 1.1122
    2. R2 1.1089
    3. R1 1.1051
  1. PP 1.1018
    1. S1 1.0981
    2. S2 1.0948
    3. S3 1.091

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Analysis feed

Latest Forex Analysis

Editors’ Picks

AUD/USD extends recovery gains to 0.6850 despite China’s coronavirus harming risk-tone

AUD/USD stays on the front-foot while taking rounds to 0.6845 amid the initial Asian session on Friday. The pair recently reacted to the preliminary readings of the Commonwealth Bank (CBA) PMI details for January.

AUD/USD News

USD/JPY falls to fresh lows, correcting on WHO statement

USD/JPY has tumbled to print fresh lows since failing on the 110 handle, scoring 109.26 and meeting the 200-moving average on the four-hour chart.

USD/JPY News

Crypto Today: Bitcoin bears force critical

BTC/USD is currently trading at $8,400 (-3.40%) in the afternoon in U.S. hours, as markets bears break critical $8500 price mark, allowing for a wave of further downside pressure. 

Read more

XAU/USD bulls challenging 1573 resistance level

XAU/USD is trading in a bull trend above its main daily simple moving averages (SMAs). After rejecting the 1600 figure earlier in January, the metal has been consolidating near the $1560 per troy ounce.

Gold News

GBP/USD pressured toward 1.31 amid risk-off mood

GBP/USD is trading around 1.31, off the highs. Coronavirus headlines are sending traders to the safety of the US dollar. Speculation about the next BOE move is rife.

GBP/USD News

Forex Majors

Cryptocurrencies

Signatures