EURUSD consolidates after yesterday’s sell-off close to 1.1135 as the pair pressured yesterday after an eight day rally that drove the price to seven week highs, amid the speculation of an interest rate cut by the Fed. Fed proceeded with an emergency rate cut by 50 basis points in an attempt to offset the coronavirus impact on the economy.
Traders now take positions ahead of the monetary policy decision by the ECB on March 12. Most likely, the ECB will have to proceed with monetary easing and this is likely to put pressure on the common currency. Pressure in Euro might persist ahead of the ECB meeting and the price might try to break below the 200-day moving average.
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EURUSD Technical Analysis
EURUSD is 0.02% lower at 1.1132 retreating from seven week highs, and after eight consecutive positive trading sessions. EURUSD tested and bounced from the 200-day moving average the last two trading sessions.
On the downside, the initial support stands at 1.1129 the daily low. If the EURUSD breaks below the next target would be the 1.1098 the 200-day moving average. Next support will be met at 1.1056 the 100-day moving average.
On the other side, the immediate resistance for the pair stands at 1.1143 the daily top. A break above might target the next resistance level at 1.1186 the high from yesterday’s trading session. More offers would be met at 1.1213 the high from March 3nd.