EURUSD slumps to 1.0728 the lowest level since April 2017 after the European Central Bank launched a temporary quantitative easing programme. ECB will buy bonds up to 750 billion of companies and government debt across the eurozone in an emergency move to combat the coronavirus outbreak impact.
Earlier today the German IFO Business Climate dropped to 87.7 in the preliminary reading for March 2020. Clemens Fuest, of IFO institute, said that the German economy might shrink by 6% due to the coronavirus outbreak. Earlier this week, the ZEW Current Conditions Index dropped to -43.1 from -15.7, and the Economic Sentiment Index slumped from 8.7 to -49.5.
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EURUSD Price Technical Outlook
EURUSD is 1.51% lower at 1.0744 close to daily low’s as the pressure accelerated after ECB’s announcement. Bears are in control now, and lower levels can’t be ruled out.
On the downside, initial support for the pair stands at 1.0726 the daily low. In case the EURUSD breaks below the next support is at 1.0684 the low from April 21, 2017.
On the flip side, first resistance for EURUSD stands at 1.0981 the daily high. A credible break above will meet the next resistance at 1.1029 the 50-day moving average. Next hurdle to the upside is at 1.1066 the 100-day moving average.
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