25 Mar 2014
EUR/USD drops to lows around 1.3780
FXStreet (Edinburgh) - The EUR/USD is now testing fresh intraday lows in the boundaries of 1.3780 following dovish comments by ECB’s J.Makuch.
EUR/USD weaker below 1.3800
Spot keeps suffering the selling pressure on Tuesday, while Bundesbank’s Weidmann before and ECB’s Makuch now fanning the flames with dovish comments regarding the EUR. Makuch’s appreciations weighed on the single currency after he remarked the need for measures to counteract the deflationary risks, opening the door for some sort of quantitative easing. In the same mood, he sees a weaker exchange rate by year-end. It is worth recalling the Weidmann also slipped the likeliness of QE in the euro area, mentioning at the same time the chance of implementing negative rates. Of course such a dovish cocktail dragged spot to the vicinity of 1.3780, posting fresh intraday troughs.
EUR/USD key levels
The pair is now losing 0.37% at 1.3787 with the next support at 1.3760 (low Mar.24) and then 1.3749 (low Mar.20). On the flip side, a break above 1.3877 (high Mar.24) would target 1.3935 (high Mar.19) en route to 1.3944 (high Mar.18).
EUR/USD weaker below 1.3800
Spot keeps suffering the selling pressure on Tuesday, while Bundesbank’s Weidmann before and ECB’s Makuch now fanning the flames with dovish comments regarding the EUR. Makuch’s appreciations weighed on the single currency after he remarked the need for measures to counteract the deflationary risks, opening the door for some sort of quantitative easing. In the same mood, he sees a weaker exchange rate by year-end. It is worth recalling the Weidmann also slipped the likeliness of QE in the euro area, mentioning at the same time the chance of implementing negative rates. Of course such a dovish cocktail dragged spot to the vicinity of 1.3780, posting fresh intraday troughs.
EUR/USD key levels
The pair is now losing 0.37% at 1.3787 with the next support at 1.3760 (low Mar.24) and then 1.3749 (low Mar.20). On the flip side, a break above 1.3877 (high Mar.24) would target 1.3935 (high Mar.19) en route to 1.3944 (high Mar.18).