Turbulence for the Euro as QE Unwinding Starts Next Month
| Support | Resistance |
|---|---|
| S1: 1.1875 | R1: 1.2000 |
| S2: 1.1750 | R2: 1.2075 |
| S3: 1.1460 | R3: 1.2250 |
Essential Insights
Volatility returned to the EURO in the last few hours after the FOMC announced the dates of the QE unwinding process. A surge in US dollar strength has impacted the EURUSD more than the other majors, and the move lower may continue if the ECB press conference gives less than inspiring news about the current state of the Eurozone tomorrow night.
Technicals
Volatility returned to the EURO in the last few hours after the FOMC announced the dates of the QE unwinding process. A surge in US dollar strength has impacted the EURUSD more than the other majors, and the move lower may continue if the ECB press conference gives less than inspiring news about the current state of the Eurozone tomorrow night.
Fundamentals
With the announcement of the asset shrinking start date beginning next month, all eyes will now turn to the Federal Funds Rate announcement and the ECB Press conference tonight, followed by President Draghi’s speech on Friday night. Traders should also pay attention to the US Unemployment Claims, also released tonight to offer any clues for the next US rate hike.
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