The European currency has slightly declined against the American dollar. The lowest price at the trading session was at the level of 1.1169. Euro is under pressure from the decision of ECB to leave interest rate unchanged at the level of 0.05%. According to Mario Draghi, the Bank will continue quantitative easing policy until target inflation level is reached. It is expected that by the end of 2015 inflation can reach 1.8% due to incentive programs and slowdown of the price decline for energy.
According to preliminary estimates, it is also expected that GDP will rise up to 2.1% by 2017. However, until the Greek problems remain unsettled, Euro is unlikely to go up, especially if the US Fed raises interest rates.
Today, the US non-farm payroll report will be released. In case the index exceeds the forecast of 225 thousand, Euro can fall to 1.1088.
Support and resistance
The nearest resistance level is 1.1108 (3/8 Murray). Support level is 1.1230 (4/8 Murray).
It is advisable to open short positions after breakdown of the level of 1.1170 with protective order at 1.1200 and the target of 1.1088.Publication source