EUR/USD plummets back closer to yearly lows post-ECB

ECB leaves interest rates unchanged and sends a dovish signal in the policy statement.
The shared currency initially spiked before witnessing a dramatic intraday turnaround.

Haresh Menghani FXStreet

The EUR/USD pair faded a knee-jerk bullish spike and tumbled to refresh two-month lows, around the 1.1120 region post-ECB announcement.

The shared currency initially picked up some pace after the European Central Bank, at its latest monetary policy meeting held this Thursday, decided to leave interest rates unchanged. However, dovish signals in the accompanying rate statement - indicating rates to remain at present or lower levels at least through the first half of 2020, exerted some fresh downward pressure on the shared currency.

The ECB added that it needs to maintain a highly accommodative policy for a prolonged time and remains determined to act if inflation outlook falls short of its aim, which coupled with the prevalent bullish sentiment around the US Dollar further collaborated to the pair's sharp downfall to the lowest level since late-May 2019.

Technical levels to watch

EUR/USD

Overview
Today last price	1.1141
Today Daily Change	0.0001
Today Daily Change %	0.01
Today daily open	1.114

Trends
Daily SMA20	1.125
Daily SMA50	1.1243
Daily SMA100	1.1245
Daily SMA200	1.1313

Levels
Previous Daily High	1.1156
Previous Daily Low	1.1127
Previous Weekly High	1.1286
Previous Weekly Low	1.12
Previous Monthly High	1.1414
Previous Monthly Low	1.116
Daily Fibonacci 38.2%	1.1138
Daily Fibonacci 61.8%	1.1145
Daily Pivot Point S1	1.1126
Daily Pivot Point S2	1.1112
Daily Pivot Point S3	1.1097
Daily Pivot Point R1	1.1156
Daily Pivot Point R2	1.1171
Daily Pivot Point R3	1.1185

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.