Search ForexCrunch
  • Euro tumbles after comments from ECB Rehn regarding stimulus package.  
  • EUR/USD hovering around 1.1100, under pressure but off lows.  

The EUR/USD pair dropped quickly from 1.1150 to 1.1090, reaching the lowest intraday level since August 2. From the lows bounced back above 1.1100 but still remains under pressure, on its way to the third daily decline in-a-row.  

Rehn sends Euro lower  

“It’s important that we come up with a significant and impactful policy package,” said Olli Rehn, governor of the central bank of Finland and board member of the European Central Bank, in an interview with the Wall Street Journal, referring to the September policy meeting.  

His comments triggered a decline of the already weak Euro across the board. It extended losses versus the US dollar and the Pound while it erased gains against the Swiss franc and the Yen.  

The decline has been limited probably due to a not so strong US dollar. The greenback gained momentum but only momentarily following the upbeat US retail sales report. But Industrial Production data and trade tensions between the US and China weigh on the greenback.  

EUR/USD challenging 1.1100

The pair is testing the 1.1100/10 support area. A consolidation below could clear the way for a slide to the next strong support seen at 1.1060. If the decline continues, the next level to watch is the 2019 low at 1.1026.  

On the upside, the euro needs to regain levels on top of 1.114/50 to alleviate the bearish pressure. Above resistance levels are located at 1.1155 and 1.1180.