EUR/USD technical analysis: Euro drops to 1.1107 level as ECB readies an impactful September package

EUR/USD is trading at weekly lows as the ECB is getting ready to surprise the market.
ECB's Rehn: ECB stimulus package may beat expectations, EUR/USD drops toward 1.11
The level to beat for sellers is the 1.1107 support.

Flavio Tosti Independent Analyst

EUR/USD daily chart

On the daily time-frame, the single currency is trading in a bear trend below its main daily simple moving averages (DSMAs). Earlier in the New York session, the US Retail Sales Control Group came in better-than-expected at 1% vs. 0.3% in July. The data brought EUR/USD down to 1.1135 but didn't manage to break the support. What broke 1.1135 was the comments from ECB member Olli Rehn saying that ECB (European Central Bank) stimulus package may beat expectations.

EUR/USD 4-hour chart

The Euro is challenging the 1.1107 support. A beak below the level would open the doors to further losses towards 1.1084 and 1.1061 levels.

EUR/USD 30-minute chart

The market is under heavy bearish pressure at the daily lows. Immediate resistances are seen at the 1.1135 and 1.1144 levels, according to the Technical Confluences Indicator.

Additional key levels

EUR/USD

Overview
Today last price	1.1112
Today Daily Change	-0.0026
Today Daily Change %	-0.23
Today daily open	1.1138

Trends
Daily SMA20	1.1168
Daily SMA50	1.1236
Daily SMA100	1.1223
Daily SMA200	1.1294

Levels
Previous Daily High	1.1192
Previous Daily Low	1.1131
Previous Weekly High	1.1251
Previous Weekly Low	1.1104
Previous Monthly High	1.1373
Previous Monthly Low	1.106
Daily Fibonacci 38.2%	1.1154
Daily Fibonacci 61.8%	1.1168
Daily Pivot Point S1	1.1116
Daily Pivot Point S2	1.1092
Daily Pivot Point S3	1.1054
Daily Pivot Point R1	1.1176
Daily Pivot Point R2	1.1214
Daily Pivot Point R3	1.1238

Author

Flavio Tosti

Independent Analyst

EUR/USD flirts with weekly lows near 1.1770

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GBP/USD threatens the 200-day SMA near 1.3440

GBP/USD rapidly leaves behind Wednesday’s strong advance, coming under heavy pressure and retesting the 1.3440 zone, where the critical 200-day SMA is located. Cable’s deep pullback follows the strong gains in the Greenback, while investors continue to pencil in a potential BoE rate cut in March.

Gold trims gains, slips back to around $5,170

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