EUR/USD has retraced 61.8% Dec to Apr rally

EUR/USD pair is looking to extend losses below 1.0937, which is the 61.8% Fibo retracement of the rally from December low of 1.0517 to April high of 1.1616.

Draghi Taptered the ‘Taper Talk’

Euro was offered yesterday after ECB President Mario Draghi said the bank did not discuss QE Taper and has no intention of abruptly ending the QE program. Earlier this month, Bloomberg article said the central bank intends to end the QE program in a phased manner.

Markets somehow believed that the central bank is planning to announce the Taper this year. However, Draghi put an end to the Taper talk, due to which the currency was offered at high of 1.1032, following which it closed on a weaker note around 1.0929.

The common currency was last seen trading around 1.0921 levels.

EUR/USD Technical Levels

A break above 1.0937 (61.8% of 1.0517-1.1616) would open door for 1.0964 (Oct 17 high) where a violation would shift risk in favor of a re-test of Thursday’s high of 1.1032. On the lower side, breach of 1.0911 (Brexit day low) would expose 1.0822 (Mar 10 low), under which a major support is seen directly at 1.0776 (76.4% of 1.0517-1.1616).