EUR/USD Extends the Drop to 1.1080
The selling mood is now gathering further steam around the shared currency, with EUR/USD testing the 1.1085/80 band.
EUR/USD focus on 200-day sma?
Spot accelerates its recent rejection from the 1.1220 area, or 3-week peaks following the ECB announcements on Thursday, in a context where the risk-on sentiment keeps growing bigger amongst traders.
In addition, ECB’s VP V.Constancio has argued that there are limits to the central bank’s negative rate policy, somewhat collaborating with the downside.
EUR/USD levels to watch
The pair is now losing 0.80% at 1.1089 facing the next support at 1.1044 (200-day sma) ahead of 1.0985 (55-day sma) and then 1.0820 (post-ECB low Mar.10). On the upside, a breakout of 1.1218 (post-ECB high Mar.10) would expose 1.1339 (high Fe.9) and then 1.1379 (2016 high Feb.11).
(Market News Provided by FXstreet)
