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EUR/USD stabilizes off lows after Draghi hints at more easing

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 21, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - The euro managed to stabilize off recent lows following a sharp drop triggered by Draghi’s rhetoric, which opened the door for further easing at the ECB meeting in March

    EUR/USD fell nearly 150 pips and bottomed out at 1.0777 before finding buyers and correcting slightly. However, with the bounce capped by the 1.0845 zone, the pair has spent the last hours in a slimmer range. At time of writing, the pair is trading at 1.0835, still down 0.52% on the day.

    Draghi shakes markets, again

    European Central Bank President, Mario Draghi, said Thursday that the ECB will possibly reconsider monetary policy stance at next meeting as downside risks have increased again. He added there are no limits on how far ECB is prepared to act, raising speculation the bank is laying the ground for more easing in March.

    EUR/USD levels to watch

    As for technical levels, next supports could be found at 1.0777/70 (Jan 21 & 7 lows) and 1.0710 (Jan 5 low). Meanwhile, immediate resistances are seen at 1.0845 (intraday level), 1.0975/84 (Jan 20 & 15 highs), 1.0997/1.1000 (100-day SMA/psychological level) and 1.1048 (200-day SMA).
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