Yesterday the pair could not overcome the 1.1265 level and today it fell below the level of 1.1200. The euro began to fall after the last meeting of the ECB. As expected, the regulator left interest rates and the volume of asset purchase unchanged. Mario Draghilowered inflation expectations for 2017 and 2018, and also made it clear that he has not yet planned any changes in the QE program.
An additional factor in the fall of the pair was the strengthening of the US dollar due to the decrease in geopolitical tensions.
Yesterday, a former FBI head was speaking before the US Senate Intelligence Committee. He had been dismissed on the orders of Donald Trump by the recommendations of the Ministry of Justice. Critics of the current president believe that the reference to the Ministry of Justice is no more than a formal occasion, but the real reason for the departure of James Komi from his post was the investigation into Russia's interference in American elections. Despite the fact that the former head of the FBI reported a request for "loyalty" from the president, he did not confirm the existence of the order from the head of state to stop the investigation.
On the 4-hour chart, the pair continues the correction, trading below 1.1200. There is a strong support level of 1.1110 ahead. The MACD indicator is below the zero and signal lines, its volumes are growing. Stochastic is in the oversold zone, the lines are directed downwards.
Support levels: 1.1110, 1.0960, 1.0850.
Resistance levels: 1.1200, 1.1265, 1.1360.