EUR/USD breaches 1.09 on ECB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The European currency is now surrendering initial gains vs. the dollar, dragging EUR/USD back to sub-1.0900 levels.

    EUR/USD lower on ECB Accounts

    Spot is losing some steam after the ECB minutes have shown that some members were inclined to cut the deposit rate by 20 bps (instead of 10 bps), while others have expressed their concerns for a cut larger than 10 bps.

    The minutes also showed that some members have only supported limited adjustments to the current policy stance, opposed to a policy change. The Council has also emphasized that policy action remains uninfluenced by market expectations.

    EUR/USD levels to watch

    The pair is gaining 0.09% at 1.0892 with the next hurdle at 1.0995 (high Dec.27) followed by 1.1010 (100-day sma) ahead of 1.1059 (high Dec.15). On the flip side, a breakdown of 1.0798 (61.8% Fibo of 1.0538-1.1059) would aim for 1.0709 (low Jan.5) and then 1.0538 (low Dec.3).
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