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EUR/USD decline halted near 1.1150

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Edinburgh) - The downside in EUR/USD seems to have run out steam around the mid-1.1100s so far.

    EUR/USD lower on ECB

    In line with market expectations, President M.Draghi sounded dovish at his press conference following the steady stance at the ECB meeting today.

    The single currency has been dragged to fresh 3-week lows vs. the greenback, re-visiting the 1.1155/50 band after the ECB reiterated that it remains ready to act in case of need, with the current QE programme set to run at least until September 2016.

    In addition, and in one of his most dovish remarks, Draghi has stated that not only some members have voted to act today, but also that a rate cut in the deposit facility has been discussed.

    The inflation figures in the region have also taken centre stage today, with the ECB now expecting consumer prices staying at very low levels for the time being, although they might pick up pace towards 2016 and 2017.

    EUR/USD relevant levels

    As of writing the pair is retreating 1.48% at 1.1176 and a breakdown of 1.1153 (61.8% Fibo of 1.0808-1.1713) would expose 1.1126 (200-day sma) and finally 1.1086 (low Sep.3). On the flip side, the next hurdle lines up at 1.1366 (38.2% Fibo of 1.0808-1.1713) followed by 1.1450 (downtrend from May’14 top) and then 1.1498 (23.6% Fibo of 1.0808-1.1713).
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