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13 Mar 2015
EUR/USD falls further below 1.0500
FXStreet (Córdoba) - After a short lived recovery, EUR/USD failed to hold above 1.0500 and dropped to 1.0464, reaching the lowest level since January 2013 and extended weekly losses to more than 350 pips.
Greenback gained momentum across the board during the American session, particularly versus the euro and the pound as stocks decline in Wall Street and crude oil tumbles. The euro is under pressure and reached fresh daily lows in the market.
The EUR/USD pair is about to post the third weekly decline in a row weakened by monetary policy divergence. While the European Central Bank started the expanded purchase program on Monday, the Federal Reserve is expected to give signals of a rate hike.
Price continues to approached the parity level but analysts from Rabobank warned about that level. “While we are not trying to catch a falling knife as the downside trend is very well defined, it is worth pointing that the long-term trendline support comes at around 1.00, which should make this psychological level even more difficult to clear”, explained Piotr Matys, FX Strategist at Rabobank.
Greenback gained momentum across the board during the American session, particularly versus the euro and the pound as stocks decline in Wall Street and crude oil tumbles. The euro is under pressure and reached fresh daily lows in the market.
The EUR/USD pair is about to post the third weekly decline in a row weakened by monetary policy divergence. While the European Central Bank started the expanded purchase program on Monday, the Federal Reserve is expected to give signals of a rate hike.
Price continues to approached the parity level but analysts from Rabobank warned about that level. “While we are not trying to catch a falling knife as the downside trend is very well defined, it is worth pointing that the long-term trendline support comes at around 1.00, which should make this psychological level even more difficult to clear”, explained Piotr Matys, FX Strategist at Rabobank.