• 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.
  
  Resistance Levels
  
  R1:  1.0644 (38.2% Retracement level)   
  
  R2: 1.0688 (50% Retracement level)        
  
  R3: 1.0730 (61.8% Retracement level)
  
  Support Levels
  
  S1: 1.0614 (Daily lows)                   
  
  S2: 1.0590 (23.6% Retracement level)
  
  S3: 1.0536 (Dec 5th lows)