12 Jan 2015
EUR/USD weakens on the increased probability of sovereign QE by ECB
FXStreet (Mumbai) - The EUR/USD pair erased gains to trade lower after the German business newspaper Handelsblatt reported a clear European Central Bank (ECB) majority behind sovereign purchases in the Eurozone.
The pair fell from a high of 1.1871 to trade 0.18% lower for the day at 1.1820 levels. The EUR has already been under pressure due to deflation fears and the uncertainties surrounding the upcoming Greek elections. Moreover, these concerns have bolstered the expectations of sovereign QE in the Eurozone, due to which the EUR/USD pair has been on the declining trend since H2 2014. The increased support for sovereign QE among the ECB governing council, as reported by Handelsblatt, only adds to the bearish pressures on the single currency.
EUR/USD Technical Levels
The pair has an immediate support located at 1.18, under which it could test 1.1640 (2005 lows). Meanwhile, resistance is seen at 1.1871 and 1.19 (10-DMA) levels.
The pair fell from a high of 1.1871 to trade 0.18% lower for the day at 1.1820 levels. The EUR has already been under pressure due to deflation fears and the uncertainties surrounding the upcoming Greek elections. Moreover, these concerns have bolstered the expectations of sovereign QE in the Eurozone, due to which the EUR/USD pair has been on the declining trend since H2 2014. The increased support for sovereign QE among the ECB governing council, as reported by Handelsblatt, only adds to the bearish pressures on the single currency.
EUR/USD Technical Levels
The pair has an immediate support located at 1.18, under which it could test 1.1640 (2005 lows). Meanwhile, resistance is seen at 1.1871 and 1.19 (10-DMA) levels.