- Euro slides on ECB considering the introduction of new TLTRO.
- EUR/USD extends correction from 1.1455, erases weekly gains.
The EUR/USD pair lost more than 30 pips in a few minutes following reports about the European Central Bank introducing new TLTROs, loans to commercial banks at low-interest rates. The suggestion that banks could be in need of funds is not a positive signal for markets.
The euro lost ground also versus the pound and the Swiss franc but modestly. The slide in EUR/USD is being followed by GBP/USD and a rally in USD/CHF.
EUR/USD rally losing more strength
The pair yesterday jumped and today hit weekly highs at 1.1455. Then it started to pullback after US data and after a consolidation around 1.1410, tumbled to 1.1374, the new low following the ECB report. The pair erased weekly gains.
The bullish tone appears to be gone and now the euro seems at risk of a significant reversal. A recovery back above could signal some support for the euro. While to the downside, at 1.1365 is the 20-SMA in 4 hours chart that could offer support. A slide below the mentioned level could signal that the bullish correction is over, exposing again the 1.1300 handle that capped the decline on Wednesday.
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