EUR/USD fades a knee-jerk bullish spike, plunges below 1.10 mark post-ECB


  • ECB cuts interest rates by 10 bps and announces a new QE program.
  • The EUR weakens across the board in reaction to dovish ECB decision.
  • Investors now look forward to Draghi's post-meeting press conference.

The EUR/USD pair faded the post-ECB bullish spike to and quickly retreated around 100-pips in the last hour, refreshing session lows and sliding farther below the key 1.10 psychological mark.
 
The shared currency picked up some upside momentum and fizzled out rather quickly after the European Central Bank, as was widely expected, lowered interest rates further into the negative territory by 10 bps to -0.50% at the conclusion of its September policy meeting.
 
The move was largely priced in the market and hence, prompted some intraday short-covering move. The ECB reintroduced QE program, €20 billion per month from 1 November, and reiterated to buy bonds as long as needed. The announcement was perceived as a more dovish tilt and eventually exerted some fresh downward pressure on the pair.
 
It will now be interesting to see if the pair is able to attract any buying interest at lower levels or the latest leg of a sudden drop marks the resumption of the prior depreciating move as the focus now shifts to the post-meeting press conference, where comments by the ECB President Mario Draghi should infuse a fresh bout of volatility around the EUR crosses.

 

Technical levels to watch

EUR/USD

Overview
Today last price 1.0966
Today Daily Change -0.0048
Today Daily Change % -0.44
Today daily open 1.1014
 
Trends
Daily SMA20 1.1058
Daily SMA50 1.1138
Daily SMA100 1.1186
Daily SMA200 1.1265
Levels
Previous Daily High 1.1056
Previous Daily Low 1.0985
Previous Weekly High 1.1085
Previous Weekly Low 1.0926
Previous Monthly High 1.1251
Previous Monthly Low 1.0962
Daily Fibonacci 38.2% 1.1012
Daily Fibonacci 61.8% 1.1029
Daily Pivot Point S1 1.0981
Daily Pivot Point S2 1.0948
Daily Pivot Point S3 1.091
Daily Pivot Point R1 1.1051
Daily Pivot Point R2 1.1089
Daily Pivot Point R3 1.1122

 

 

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD tension remains elevated ahead of the Fed

EUR/USD is trading around 1.1050, confined to a narrow range ahead of the all-important Fed decision. Chair Powell is set to cut rates by 25bps but signal no further stimulus is on the cards.

EUR/USD News

GBP/USD extends its falls to 1.2450 amid weak UK inflation, Brexit impasse

GBP/USD has dropped to around 1.2450 as UK headline CPI missed with 1.7% in August. Brexit negotiations remain stuck according to Chief EU negotiator Barnier. The Fed decision is eyed.

GBP/USD News

USD/JPY holds on to recovery gains above 108.00 ahead of Fed

Not only upbeat trade numbers from Japan but upbeat trade/political headlines also help the USD/JPY pair to remain firm around 108.20 prior to Wednesday’s European session. Focus on FOMC decision.

USD/JPY News

Gold: Pivots around $1500 mark, awaits FOMC policy update

Gold extended its sideways consolidative price action through the early European session on Wednesday and was seen pivoting around the key $1500 psychological mark, awaiting FOMC policy decision.

Gold News

Top 3 price prediction Bitcoin, Ripple, Ethereum: Cryptos seeing multiple launches into the universe

The Altcoin market has quickly confirmed Tuesday’s analysis with flashing rises in the last 24 hours. The two eternal aspirants to lead the crypto market – Ethereum and XRP – are rising sharply against Bitcoin and increasing its value rapidly.

Read more

Forex MAJORS

Cryptocurrencies

Signatures