- EUR/USD reversal from 1.1019 high, extends to two-week lows at 1.0760.
- The euro remains weak on concerns about the ECB’s bond-buying scheme.
- Below 1.0760, the EUR/USD might extend towards 1.0635 – Credit Suisse.
The euro keeps heading south against the US dollar on track to a four-day losing streak, diving from 1.1019 high to fresh two-week lows at 1.0760 so far. The EUR/USD remains weighed by market concerns about the ECB QE after the ruling of the German high court earlier this week.
Doubts about ECB’s bond-buying program hurting the euro
The euro has remained heavy during the whole week, losing nearly 2% against the US dollar. The common currency has been hit by the German Constitutional Court call to the ECB to justify its bond-buying programme.
Although the Bank is expected to validate its QE scheme, investors are speculating that the EU will find more trouble than the US on setting a monetary policy plan to support economic recovery. This sentiment has been undermining confidence in the euro over the last sessions.
EUR/USD: below 1.0760, the pair might fall to 1.0635 – Credit Suisse
FX analysts at Credit Suisse consider 1.0760 a key support area that might open the door for a larger decline, “Whilst a fresh bounce from this 1.0762/27 zone is likely, we continue to look for an eventual clear break in due course to confirm a more impulsive move lower is indeed underway again, with the next meaningful support seen at the 1.0635 low of March.”
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