FXStreet (Bali) – EUR/USD has broken into new lows, and while some fir buyign has been seen, the rate briefly set its cheapest level since Oct 20th at 1.1330, following a failed attempt to bounce towards 1.1350, with the focus now completely shifted towards the ECB.
Watch: ECB Meeting Live Coverage by Valeria Bednarik, Yohay Elam and Dale Pinkert
ECB under pressure to deliver further stimulus
Pressure is mounting for ECB President Draghi and Co. to deliver further QE, amid depressed inflationary pressures in the Eurozone. One of the latest articles doing the round in trading desk here in Asia is from the WSJ, titled “ECB May Be Pressed Into More Stimulus.”
The WSJ notes: “While there is a strong case for avoiding extra liquidity, bank must weigh market’s expectations. The European Central Bank is discovering what the Federal Reserve and Bank of England have long known: Once you start down the path of money-printing, it is extremely difficult to get off.”
EUR/USD technicals
From a technical perspective, Valeria Bednarik, Chief Analyst at FXStreet, notes: “The technical picture is neutral-to-bearish in the short term, as in the 1 hour chart, the technical indicators present mild bearish slopes below their mid-lines, whilst the price is below its moving averages that anyway lack clear directional strength. In the 4 hours chart, the price is hovering around a mild bearish 20 SMA, whilst the technical indicators remain stuck around their mid-lines.”
(Market News Provided by FXstreet)