EUR/USD breaches 1.0900, lowest since March

The post-ECB sell-off in the EUR/USD pair gathers pace in the mid-Asian trades this Friday, with the major now launching an attack to break below 1.09 handle amid persistent broad based US dollar strength.

EUR/USD erodes 140 pips since ECB no news

Currently, EUR/USD drops -0.25% to fresh seven-month lows of 1.0901, now targeting March lows reached at 1.0820. The main currency pair remains exposed to further downside risks after the ECB said at its policy decision yesterday that the central bank did not discuss tapering, while Draghi noted that the ECB is not likely to abruptly end QE, hence, putting speculations surrounding taper talks at rest.

Moreover, Draghi also added that the bank is committed to ease further, if needed, which brought back monetary policy divergence between the Fed and ECB back into the spotlight, boosting the greenback at the expense of the common currency.

In the day ahead, markets will continue to digest the latest ECB decision, while closely monitor developments surrounding the EU Summit, which commences later on the day. Besides, a speech from FOMC member Tarullo will be also eyed for fresh momentum.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance 1.0958 (5-DMA). A break beyond the last, doors will open for a test of 1.0985 (10-DMA) and from there to 1.1000 (key resistance). On the flip side, the immediate support is placed at 1.0883 (daily S1) below which 1.0850 (psychological levels) and 1.0820 (March lows) could be tested.