EUR/USD Tumbles to Lows Near 1.1270

EUR/USD Tumbles to Lows Near 1.1270

21 April 2016, 17:33
Roberto Jacobs

EUR/USD Tumbles to Lows Near 1.1270

The selling pressure around the euro is not giving up, now relegating EUR/USD to trade in session lows near 1.1270.

EUR/USD weaker after ECB

Spot is now off more than a cent since earlier ECB-induced peaks near 1.1400 the figure, quickly losing ground along with a significant pick up in the sentiment surrounding the greenback.

EUR saw its gains rapidly eroded after bulls could not break above the critical 1.1400 handle on a somewhat upbeat ECB, coming down to post 4-day lows near 1.1270.

Recall that ECB’s M.Draghi now sees consumer prices in the region could derail towards the negative territory in the coming months, while low levels of inflation could remain for a longer period. He also defended the central bank’s independence against recent criticism and he did not ruled out the case for ‘helicopter money’, albeit the Council have not discussed it today.

EUR/USD levels to watch

The pair is now losing 0.12% at 1.1282 with the next support at 1.1219 (38.2% Fibo of 1.0820-1.1455) followed by 1.1192 (55-day sma) and finally 1.1142 (low Mar.24). On the other hand, a break above 1.1454 (2016 high Apr.7) would target 1.1496 (monthly high Oct.15 2015) en route to 1.1713 (monthly high Aug.24 2015).


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