EUR/USD depressed near 1.1170, session lows

The single currency stays well within the negative territory so far today, with EUR/USD now tumbling to the 1.1180/70 band, or daily lows.

EUR/USD weaker on USD-buying

Spot is losing ground for the third straight session at the end of the week, currently putting the 20-day sma to the test around the 1.1180/70 band, all amidst the renewed pick up in the demand for the greenback.

EUR continues to suffer yesterday’s unexpected (at least for the majority of investors) dovish tone from the European Central Bank at its meeting, where it remained quite optimistic on the current economic recovery in the region albeit it lowered its inflation forecasts for the upcoming years, always on the back of declining energy prices.

The recent ECB message has somewhat mitigated the likeliness of tapering the ongoing QE programme for the time being, although board member E.Nowotny hinted earlier this morning at the fact that the central bank could bring up the issue as soon as at the July or September meetings. Consensus for a rate hike in the near to medium terms appear premature, nonetheless.

EUR/USD levels to watch

At the moment, the pair is losing 0.27% at 1.1180 facing the next support at 1.1170 (low Jun.9) followed by 1.1158 (low May 26 ) and finally 1.1108 (low May 30). On the flip side, a break above 1.1284 (2017 high Jun.5) would target 1.1300 (high Nov.9 2016) en route to 1.1367 (high Aug.18 2016).