EUR/USD extends losses since last week hitting the bottom at 1.0866 -14%. The pair keeps the offered tone intact as the US dollar peeks to new eight-month highs of 98.85, in response to hawkish the Fed boosting the odds of a rate hike this year. Add to that, Draghi hinted at extending the OE program, resulting in the EUR/USD tumbling from Friday's highs 1.0929, and hitting today's low at 1.0859. The EUR/USD is still under pressure and expected to keep it's bearish trend, awaiting tomorrow's German IFO and Draghi's speech which will give heads up on how the EUR/USD will settle.
Trend: Bearish
Key levels to watch: Daily Pp 1.0890
First resistance R1 1.0921, R2 1.0963, R3 1.1027
First Support : S1 1.0841, S2 1.0794, S3 1.0770
Remark: The preferable trend is bearish, an opposite shift should be included due to German IFO 9 AM GMT tomorrow, and Draghi's speech at 4:30 PM GMT to see further implications on the QE and to adjust the way it is conducted.
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.