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EUR/USD breaches 1.0900 post-ECB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The common currency is now losing further ground vs. the dollar, sending EUR/USD to test the area of fresh daily lows near 1.0870.

    EUR/USD lower on ECB decision

    Spot met renewed selling pressure after the ECB has unexpectedly lowered its interest on the main refinancing operations by 5 bp to 0.00%, surprising market consensus. The central bank has also cut the interest rates on the deposit lending facility and the marginal lending facility by 10 bp and 5 bp, to -0.40% and 0.25%, respectively.

    As the pair’s selling mood grows bigger, EUR will remain exposed to further pressure in light of the upcoming press conference by President Mario Draghi, due later in the European afternoon.

    EUR/USD levels to watch

    The pair is now losing 1.13% at 1.0870 facing the next support at 1.0823 (low Mar.2) and then 1.0709 (2016 low Jan.5). On the upside, a breakout of 1.1043 (200-day sma) would expose 1.1101 (50% Fibo of 1.1379-1.0823) and then 1.1166 (38.2% Fibo of 1.1379-1.0823).
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