EUR/GBP drops as ECB to reconsider policy stance in March

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The EUR is being offered across the board, sending the EUR/GBP lower after ECB’s Draghi left the doors wide open for more easing in March.

    Drops to 5-DMA

    The cross is heading towards the 5-DMA support located at 0.7643 levels. The shared currency is taking a beating after Draghi said the bank shall review and reconsider its monetary policy stance since the downside risks to Euro area have increased.

    Earlier today, the bank left key rates unchanged following which the pair clocked a daily high of 0.7742 before selling pressure spiked on dovish comments from Draghi.

    EUR/USD Technical Levels

    The pair appears to have found support at the 5-DMA at 0.7643 as of writing. A break lower would expose the 10-DMA located at 0.7590. On the other hand, a break above 0.7669 (previous day’s low) could see the pair revisit 0.77 levels.
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