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EUR/USD slumps to 1.1240, ECB weighs

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

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Edinburgh) - The selling pressure is accelerating around the common currency on Thursday, dragging EUR/USD to the 1.1250/45 band.

    EUR/USD weaker post-ECB

    The pair has surrendered part of its advance to session highs near 1.1320 following the dovish tone of today’s ECB Accounts, showing the willingness of the central bank to incur in further stimulus if required. Adding to the downbeat tone, the Council has expressed its concerns on the downside risks on inflation, aggravated by lower commodity prices and the stronger EUR.

    In the data space, US Initial Claims have come in better than expectations during the week ended on October 2nd, adding further legs to USD ahead of the critical FOMC minutes and Fedspeak due later.

    EUR/USD levels to watch

    As of writing the pair is advancing 0.13% at 1.1253 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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