Draghi’s comments sent the euro to 11-years low


Draghi's comments sent the euro to 11-years low

The euro fell sharply against the dollar and was at the new lows, at the levels where it was almost twelve years ago last time. The market is in influenced by ECB monetary policy and M. Draghi’s performance. The ECB keeps rates unchanged on the level of 0,05%. The bond purchases program for 60 milliard euro will start on March, 9. The pair euro/dollar resumed its decline, broke through the support near 1.1100-1.1120, then tested it but continued to decline and the pair is trading at the psychological level of 1.0980-1.1000 now. The pair is showing oversold signs, so it is likely there will be the profit fixation near this level.

The support levels are 1.0980-1.1000, and the resistance levels are 1.1120-1.1140.

MACD is in a negative territory.

Trading recommendations

However, the downtrend is still in force and we should not exclude the current level breakthrough that will open the way towards parity. Therefore, bears and bulls should be extremely cautious.


Draghi's comments sent the euro to 11-years low

The British pound has fallen against the dollar after rather unexpected reports about the UK service sector growth slowdown. The UK statistics will present the Halifax February house prices report- it is expected that the index will show decline on the month basis, -0.2% m/m after the previous + 2% m/m and there is no change on the annual basis + 8.5% y/y as in January. The pair pound/dollar continued its decline, tested the support around 1.5280-1.5260. Moreover, it was immediately broken through which led to the pair decrease to 1.5200-1.5220.

The support levels: 1.5200-1.5220 and the resistance levels: 1.5280-1.5300.

The MACD indicator is in a negative territory.

Trading recommendations

Now it is possible the 52nd figure retesting in the short term, the loss of which will open the way towards 1.5140-1.5160. The Bank of England meeting results and the US labor market publication can change the situation for the pair.


Draghi's comments sent the euro to 11-years low

The factors, influencing events in the dollar trade against the Europeans had no effect on the USD/JPY and after the narrow range consolidation the pair grew. There did not get more optimism in the stock yesterday – the Nikkei increased only by 0.26% after the previous -0.6%. However, the European Central Bank messages can violate this calm and provoke some volatility growth. The pair USD/JPY left in the narrow range, limited by the levels of 119.25 and 120.20. pair tested the level of 120.20-120.40.

The support levels: 119.05-119.25, and the resistance levels: 120.20-120.40.

The MACD indicator is in a positive territory.

Trading recommendations

Bulls still need to overcome the resistance 120.20-120.40. The pair inability to rise up and consolidate above this level will trigger the new sales wave.

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