During last Friday, the EUR/USD pair lost more than 140 points. According to analysts, the pair was falling due to the fact that the Bank of Japan decided to introduce a negative interest rate amid Japan’s low inflation and poor economic growth. If no improvements in the economic situation follow, the Regulator might continue lowering its negative interest rate. As many analysts suggest, the ECB might use similar measures in order to fight deflation in the eurozone that creates risks of weakness of the European currency. The ECB President Mario Draghi might comment on this situation during his speech, due today.
From a technical point of view, numerous long positions were opened at the level of 1.0817; thus, this level should be considered as an opportunity for placing buy orders.
The nearest support level is 1.0817.
The nearest resistance level is 1.0933.
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