EUR/USD ends the week lower with focus on Fed, ECB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/USD is poised to close the day, and the week, lower dangerously close to its 7-month trough scored on Wednesday at 1.0616 as ECB President Draghi hinted at more policy easing on Friday.

    EUR/USD failed to regain the 1.0700 level and came under renewed pressure during the American session, sliding to the 1.0640 area before finding support. At time of writing, EUR/USD is trading at 1.0648, down 0.78% on the day and 1.00% lower over the week, with the pair vulnerable to monetary policy divergence.

    Earlier this week both central banks published minutes from their October meetings. While the Fed sounded less hawkish than expected, investors are still pricing in a December rate hike. On the other hand, the ECB highlighted deflation risks and called to re-examine degree of policy accommodation in December.

    EUR/USD levels to watch

    As for technical levels, short-term supports are seen at 1.0616 (Nov 18 low), 1.0570 (Apr 15 low) and 1.0520 (Apr 13 low). On the flip side, resistances could be faced at 1.0714 (10-day SMA), 1.0762 (Nov 19 high) and then 1.0829 (Nov 12 high).
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