FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, sees the pair slipping to the 1.06 area in a 1-3 month horizon. Key Quotes “FX markets are increasingly looking to major central banks for support in an environment where market participants are left guessing whether recent market gyrations are merely repercussions of the oil price drop or a warning of a global recession ahead”. “Yesterday, Draghi clearly hinted that the ECB could be a first mover in this respect, signaling that it will be likely to be necessary to both 'review and reconsider' the ECB’s policy stance in March”. “EUR/USD fell below 1.08 as a result with close to a full 10bp cut in the deposit rate now priced in for March”. “While we were surprised by Draghi's dovish stance, we maintain that EUR/USD is caught in the 1.05-1.10 range near term and still project the cross at 1.06 in 1-3M”. “The Fed has also been repriced recently in a more dovish direction but without much effect on EUR/USD as a range of counteracting forces are keeping the cross afloat at present”. For more information, read our latest forex news.