EUR/USD slides further, 1.0800 on sight

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The offered tone remains intact around the European currency on Friday, now pushing EUR/USD to challenge session lows in the vicinity of 1.0810.

    EUR/USD weaker on ECB, US data eyed

    The possibility that the ECB could reassess its current monetary policy stance at its meeting in March plus increasing speculations of a 10 bps rate cut of the interest rate on deposits keeps weighing on EUR-sentiment today, prompting spot to maintain its bearish tone near the 1.0800 handle.

    Earlier appreciations by President M.Draghi and board member E.Nowotny have moved in the same direction, somehow confirming the potential scenario within a couple of months.

    EUR/USD levels to watch

    The pair is now retreating 0.66% at 1.0816 with the immediate support at 1.0777 (post-ECB low Jan.21) followed by 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709 (low Jan.5). On the flip side, a break above 1.0877 (20-day sma) would target 1.0991 (100-day sma) en route to 1.1059 (high Dec.15).
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