EUR/USD: QE Program May Drop Euro
LiteForex Europe | Jan 22, 2015 05:27AM ET
The single European currency is trading in a narrow range of 100-120 points. The pair did not manage to consolidate above yesterday's maximum of 1.1665 and dropped to a level of 1.1600.
The currency market participants do not risk opening trades ahead of the ECB' meeting regarding monetary policy. The interest rate will apparently remain the same but the quantitative easing program might be launched for fighting deflation, which will lead to a further weakening of the euro and a new turbulent stage in the currency market. If so, the EUR/USD may fall to 1.1200-1.1400 values.
Another stressful factor is the unstable political situation in Greece. Analysts fear that the power could shift to the party that is not in favour of austerity measures, which may result in Greece leaving the eurozone.
The nearest resistance level is 1.1719 (0/8 Murray). The support level is at 1.1475 (2/8 Murray).
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