EUR/USD sidelines above 1.1300

Pablo Piovano FXStreet

FXStreet (Edinburgh) - The decline in EUR/USD remains well and sound on Friday, as markets continue to digest the larger than expected QE programme launched yesterday by the ECB.

EUR/USD supported around 1.1300

The ECB announcements sparked a sharp sell of from the upper-1.1500s to the current area in levels just above 1.1300 the figure. Recall that the European Central Bank surprised investors on Thursday announcing an expanded bond buying programme, involving monthly purchases of ABS and covered bonds worth €60 billion. The programme is scheduled to start in March and will last until September 2016, or until the central bank sees consumer prices are heading towards its 2% inflation target.

Today’s docket in the euro bloc will see the preliminary prints of the manufacturing and services PMIs, whereas in the US economy Existing Home Sales and Markit’s PMI will take centre stage.

EUR/USD key levels

At the moment the pair is losing 0.21% at 1.1336 with the next support at 1.1315 (low Jan.23) followed by 1.1238 (low Sep.19 2003) and then 1.1227 (low Sep.18 2003). On the flip side, a breakout of 1.1360 (hourly high Jan.22) would expose 1.1393 (hourly high Jan.22) and then 1.1432 (hourly high Jan.22).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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