16 Jan 2015
EUR/USD bouncing off lows
FXStreet (Edinburgh) - The single currency managed to leave fresh multi-year lows in sub-1.1500 levels, lifting EUR/USD to the area of 1.1530 so far.
EUR/USD hurt by dollar, SNB, ECB
The current USD-strength remains the principal factor behind the EUR depreciation. However, the potential adoption of some sort of quantitative easing by the ECB in its next meeting on January 22nd continues to weigh on the European currency, as it’s been doing for several months now. The recent confirmation of the disinflationary pressures in the bloc would be paving the way for further monetary stimulus. Furthermore, yesterday’s decision by the SNB to abandon the minimum exchange rate in EUR/CHF accentuated the offered tone around the euro and intensified the already entrenched bearish view for the beleaguered currency.
EUR/USD key levels
At the moment the pair is losing 0.72% at 1.1534 and a breach of 1.1505 (low Nov.12 2003) would expose 1.1445 (low Nov.11 2003) ahead of 1.1376 (low Nov.7 2003). On the flip side, the initial barrier lines up at 1.1647 (hourly high Jan.16) followed by 1.1792 (high Jan.15) and finally 1.1805 (200-h MA).
EUR/USD hurt by dollar, SNB, ECB
The current USD-strength remains the principal factor behind the EUR depreciation. However, the potential adoption of some sort of quantitative easing by the ECB in its next meeting on January 22nd continues to weigh on the European currency, as it’s been doing for several months now. The recent confirmation of the disinflationary pressures in the bloc would be paving the way for further monetary stimulus. Furthermore, yesterday’s decision by the SNB to abandon the minimum exchange rate in EUR/CHF accentuated the offered tone around the euro and intensified the already entrenched bearish view for the beleaguered currency.
EUR/USD key levels
At the moment the pair is losing 0.72% at 1.1534 and a breach of 1.1505 (low Nov.12 2003) would expose 1.1445 (low Nov.11 2003) ahead of 1.1376 (low Nov.7 2003). On the flip side, the initial barrier lines up at 1.1647 (hourly high Jan.16) followed by 1.1792 (high Jan.15) and finally 1.1805 (200-h MA).