- Euro further weakens against the dollar after the ECB meeting.
- EUR / USD falls for the fourth day in a row, more negative technical outlook.
EUR / USD is falling back down on Thursday and is trading below 1.1700, at the lowest levels since late September. The combination of a strengthening of the dollar due to risk aversion and the weakness of the euro after the meeting of the European Central Bank (ECB) continue to push the pair down.
The price recently bottomed out at 1.1674, affected by the words of the president of the ECB, Christine Lagarde. She confirmed that new measures will be announced in December, necessary to face the economic situation in the region.
At the Governing Board meeting, the central bank left monetary policy unchanged, and warned that the instruments will be “recalibrated” at the December meeting. This is interpreted as new stimuli to come. These announcements were within what was expected, also the euro registered a modest decline in the market.
The US saw a drop in jobless claims and record growth in the third quarter. The economic figures had no impact on the dollar. The greenback remains strongly supported by the climate of caution in the bags. The major Wall Street indices are in positive territory, regaining some of the ground lost on Wednesday, but still looking vulnerable.
Technical overview
The EUR / USD maintains a bearish bias. A confirmation clearly below 1.1700 would confirm the negative bias. The next target can be found around 1.1605 / 10, where the September lows are. In the opposite direction 1.1730 is the first resistance to watch, ahead of the 20-day moving average at 1.1775.
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Credits: Forex Street
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