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EUR/USD breaches 1.1200 on dovish Draghi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The common currency keeps falling following President Draghi’s press conference, now dragging EUR/USD to break below the key support at 1.1200 the figure.

    EUR/USD lower on ECB readiness to act

    The selling pressure keeps growing bigger around EUR now, after President Mario Draghi argued that the Council has discussed a cut in the deposit rate (currently at -0.20%).

    With the inflation figures in the euro area now taking centre stage in the Q&A session, Draghi stressed that lower consumer prices, while positive for real disposable income, they raise the real value of debt.

    EUR/USD relevant levels

    As of writing the pair is retreating 1.30% at 1.1191 and a breakdown of 1.1180 (100-day sma) would expose 1.1126 (200-day sma) and finally 1.1100 (psychological level). On the flip side, the next hurdle lines up at 1.1450 (downtrend from May’14 top) followed by 1.1500 (76.4% Fibo of 1.0808-1.1713) and then 1.1714 (high post-PBoC move Aug.24).
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