Skip to main content

EUR/USD drops below technical support as ECB policy decision looms later today

At the second time of asking yesterday the EUR/USD did eventually take out the noted technical support level, in place at 1.0874. That was the price point of the 200 day moving average, which is now at 1.0873. The fall through that level later extended into the US close. The low seen was set at 1.0853 and the Euro later closed below that 200 day moving average, at 1.0862. It has not made any progress during the Asian session today. The reason for that is clear and it is all about the prospect of the ECB delivering an interest rate cut later today. The question is; at levels near 1.0850 is a 0.25% reduction now priced in? It would appear that the threat of a greater than 0.25% cut in the ECB benchmark rates is what has helped to push the Euro down here. So, will it bounce if the cut is only 0.25%? Well, that is possible of course. There will be more to add as the morning unfolds. The range seen so far today has been covered by 1.0851 to 1.0870. The EUR/USD is right now at 1.0854
 

Ready to Get Started?

Start here. Join over 3M Libertex users around the world!