FxWirePro: EURUSD resumes downside after ECB tapers asset buys
The EUR/USD pair initially inched higher in the US session but declined sharply after the ECB announced that it would reduce its asset buying programme to 60 billion euros ($64 billion) from next April from the current 8…
The EUR/USD pair initially inched higher in the US session but declined sharply after the ECB announced that it would reduce its asset buying programme to 60 billion euros ($64 billion) from next April from the current 80 billion euro.
The European Central Bank announced an extension of its quantitative easing programme till the end of 2017 but also signalled it would trim monthly bond purchases.
Also weighing on euro was renewed expectations that the Federal Reserve may increase interest rates in its policy meeting next week.
The ongoing weakness is set to continue for this pair as the resistance level at 1.0688 is likely to act as strong barrier to the bulls and bring a further decline towards lower levels.
To the upside, the immediate resistance can be seen at 1.0644, a break above this level would expose the pair to next resistance level at 1.0688.
To the downside, immediate support can be seen at 1.0614, a break below at this level will open the door towards next level at 1.0590.
