The European currency continues to decline against the American dollar. Only yesterday the pair EUR/USD has lost over 180 points. The decline was caused by the news that ECB is going to expand stimulus program in May and June. If economy does not demonstrate signs of recovery, it is possible that in September the volume will be increased.
The second news, which was also not favourable for Euro is the downgrade of credit rating of 20 largest banks of Europe, due to the fact that the possibility of getting government support has decreased and in the event of the financial collapse many financial institutions can turn bankrupt.
Today a meeting of the US Fed will be held. It is likely that monetary policy will be left unchanged; therefore, significant rise in the USD is not expected.
Support and resistance
The nearest resistance level is 1.1169 (1/8 Murray). Support level: 2/8 (1.1109).
It is recommended to open short positions after breakdown of the level of 1.1109 with protective orders at 1.1145 and the target of 1.1050.Publication source