EUR/USD drops further on ECB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 8, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The common currency is now losing part of its initial shine following the ECB Accounts, sending EUR/USD to the 1.1280/75 band.

    EUR/USD surrenders gains post-ECB

    The pair left the area above 1.1300 the figure after the ECB Accounts showed the European Central Bank remains ready to pump in more stimulus if needed, emphasizing at the same time the downside risks on the region’s consumer prices derived from lower commodity prices, weaker growth and a stronger exchange rate.

    Furthermore, the ECB deemed as premature to evaluate the effects of uncertainties coming from the Chinese economy.

    Next on tap will be US Initial Claims, the speeches by Bullard, Williams and Kocherlakota and the FOMC minutes.

    EUR/USD levels to watch

    As of writing the pair is advancing 0.39% at 1.1282 and a breakout of 1.1330 (high Sep.21) would target 1.1460 (monthly high Sep.18) and then 1.1714 (high post-PBoC move Aug.24). On the flip side, the immediate support lines up at 1.1216 (55-d sma) followed by 1.1163 (2-month up trend) and then 1.1107 (monthly low Sep.23).
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