EUR/USD dipped to a session low of 1.1279 levels after ECB’s chief economist assured markets that the central bank has not run out of ammo and could cut rates further.
Trades below key Fibo
The spot trades below 1.1293, which is the 23.6% fibo retracement level of Mar 2014 high-Mar 2015 low. EUR entered the European session on a slightly weaker note as dollar bears paved way for profit taking following two-day selling frenzy.
The offered tone gained pace after Praet’s comments hit the wires. The focus now is on whether the European stocks extend the risk-on mood seen across Asian bourses.
EUR/USD Technical Levels
The immediate hurdle is seen at 1.1293 (23.6% of May 2014 high-Mar 2015 low), above which the pair could revisit 1.1342 (previous day’s high) and 1.1376 (Feb 11 high). On the other hand, a breakdown of confluence of support at 1.1257 (61.8% of 1.1714-1.0517) and 1.1253 (100% Fibo of 1.0517-1.1060-1.0711) would expose 1.12 handle
(Market News Provided by FXstreet)