FXStreet (Córdoba) - EUR/USD dropped sharply during the American session on the back of a stronger US dollar across the board, that climbed despite risk appetite. Euro moving away from lows The pair bottomed at 1.0807, the lowest level since Monday. Then it bounced to the upside but lost strength below 1.0850. It was trading at 1.0835, a hundred pips below yesterday’s closing price. Today’s slide brought the price closer to the level it had a week ago. The euro erased most of its weekly gains in a few hours, making a significant short-term reversal after hitting on Thursday at 1.0966 the highest level in a week. Despite central banks, EUR/USD keeps the range "On a volatile day for markets, after the decision of the Bank of Japan to introduce negative interest rates, EUR/USD is about to suffer the worst decline since the beginning of the year. But despite the decline still holds in a range and on top of 1.0800." "“We note that the market has turned more aggressive on ECB pricing following the BoJ, now pricing a full 10bp cut by March and close to 20bp by the autumn. We continue to look for just the 10bp in March and thus see limited risk of EUR downside from this angle. Coupled with a Fed not quite willing to give up its tightening mode, we see risks skewed on the downside on EUR/USD near term”, wrote analysts from Danske Bank. They continue to see a bullish outlook for the pair medium-term, targeting 1.16 in twelve months." For more information, read our latest forex news.