FxWirePro: EUR/USD declines sharply on dovish ECB, good to sell on rallies
EUR/USD has shown a huge decline after ECB meeting. ECB pledged to keep interest rates till summer of 2019. They will be reducing bond buying to 15 billion euros from Oct to December. The pair dips more than 100 pips fro…
EUR/USD has shown a huge decline after ECB meeting. ECB pledged to keep interest rates till summer of 2019. They will be reducing bond buying to 15 billion euros from Oct to December. The pair dips more than 100 pips from the intraday high of 1.18515. Fed hiked rates by 25 basis point and upgraded its forecasts and was very much optimism about economy. The policy divergence between US Fed and ECB is dragging the Euro further down. The pair hits intraday low of 1.17123 and is currently trading around 1.16870.
On the higher side, near term major intraday resistance is around 1.1850 and any convincing break above will take the pair to next level till 1.1900/1.2000 .Short term bearish invalidation only above 1.2020 (200- day MA).
The near term major support is at 1.1660 and any convincing break below will drag the pair to next level till 1.1600/1.1500. The minor support is around 1.1790/1.1750.
It is good to sell on rallies around 1.1745-50 with SL around 1.1800 for the TP of 1.1600/1.1510.
