EUR/USD remains weak below 1.0600

Pablo Piovano FXStreet

The single currency remains entrenched in the negative territory at the end of the week, with EUR/USD hovering over the 1.0570 area after briefly testing lows near 1.0550.

EUR/USD focus on US data

The pair keeps its bearish note intact today, returning to the area below the 1.0600 handle as spot remains under heavy pressure following the ECB dovish message at its meeting on Thursday.

The weakness around the common currency has accelerated after Mario Draghi said the Governing Council did not discuss any ‘tapering’ yesterday. The ECB also extended its QE programme until at least December 2017, adding that the central bank can now buy assets below the ECB’s deposit rate (currently at -0.40%), adding to the idea that the ECB plans to stay in the markets for the foreseeable future.

Data wise today, US Consumer Sentiment is expected to improve to 94.5 for the current month, up from 93.8.

EUR/USD levels to watch

The pair is now losing 0.44% at 1.0570 facing the immediate support at 1.0551 (low Dec.9) followed by 1.0515 (low Nov.24) and finally 1.0503 (2016 low Dec.5). On the other hand, a break above 1.0798 (high Dec.5) would target 1.0815 (38.2% of the November drop) en route to 1.0873 (spike post-ECB Dec.8).

Sell 50%

Buy 50%

Avg Sell Price 1.0751

Avg Buy Price 1.0882

Liquidity Distribution

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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