EUR/USD slumps to 1.1220 on Draghi’s presser

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 single currency has accelerated its daily decline vs. the dollar, dragging EUR/USD to fresh lows in the 1.1220 area.

    EUR/USD much weaker on ECB statement

    The pair has slumped to the area of 1.1245/40 after the ECB stressed that the current bond-buying programme is expected to run until September 2016 or beyond if necessary. The central bank remains ready to act in case of need.

    Draghi has also reiterated that consumer prices in the region will remain in very low levels in the near term, and could pick up further in the next year and 2017.

    EUR/USD relevant levels

    As of writing the pair is retreating 0.94% at 1.1232 and a breakdown of 1.1200 (psychological level) would expose 1.1181 (100-day sma) and finallt 1.1126 (200-day sma). On the flip side, the next hurdle lines up at 1.1450 (downtrend from May’14 top) followed by 1.1500 (76.4% Fibo of 1.0808-1.1713) and then 1.1714 (high post-PBoC move Aug.24).
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