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2 Jan 2015
EUR/USD dives to fresh 4-1/2 year lows
FXStreet (Mumbai) - The single currency slumped further in to red against the US dollar, reaching fresh a four and a half year high, ahead of PMI readings from Italy, Spain and Euro-zone as a bloc.
Currently, the EUR/USD pair trades at 1.2044 levels, down -0.52% on the day, quickly pulling away from fresh 4-1/2 year lows hit at 1.2035 few minutes ago. EUR/USD is expected to remain pressured among growing expectations of the European Central Bank (ECB) going in for a full-blown Sovereign quantitative easing program as early at the upcoming meeting on Jan 22, sent the Euro down versus the US dollar. Moreover, ECB chief Draghi’s warning in an interview that the risk of the central bank failing its mandate of preserving price stability was higher now than six months ago hurt the Euro, dragging it down to multi-year lows against the US dollar.
Meanwhile, EUR/USD may remain lower, as traders remain wary ahead of Euro nation’s PMI data due out shortly.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.2089 (Today’s High) levels, above which gains could be extended to 1.21 levels. On the flip side, support is seen at 1.20 levels, below which it could extend losses to 1.1976 levels.
Currently, the EUR/USD pair trades at 1.2044 levels, down -0.52% on the day, quickly pulling away from fresh 4-1/2 year lows hit at 1.2035 few minutes ago. EUR/USD is expected to remain pressured among growing expectations of the European Central Bank (ECB) going in for a full-blown Sovereign quantitative easing program as early at the upcoming meeting on Jan 22, sent the Euro down versus the US dollar. Moreover, ECB chief Draghi’s warning in an interview that the risk of the central bank failing its mandate of preserving price stability was higher now than six months ago hurt the Euro, dragging it down to multi-year lows against the US dollar.
Meanwhile, EUR/USD may remain lower, as traders remain wary ahead of Euro nation’s PMI data due out shortly.
EUR/USD Technical Levels
The pair has an immediate resistance at 1.2089 (Today’s High) levels, above which gains could be extended to 1.21 levels. On the flip side, support is seen at 1.20 levels, below which it could extend losses to 1.1976 levels.