Almost a monthly upward movement on EURUSD was stopped because of verbal intervention by the head of European Central Bank. Mario Draghi announced that EBC may use any of its tools to weaken the euro. Verbal intervention was successful and there was a sudden sale of euro. From top in mid-October to last Friday low price dropped about 500 pips. Since the beginning of the week the price has stabilized at support, which is the level of 1.1000. Now much depends on today’s FED meeting, although analysts do not expect any change in interest rates. However, the mood of the Protocol may be hawkish which means the FED can give a strong signal that a rate hike will occur later this year.
Such a course of events will result in further declines in the EURUSD. If the declines will continue their target will be the level of 1.0810. After his defeat tested may be even lows of 2015 years around 1.0500. Alternatively, if there were increases the next resistances, are on levels: 1.1080-1.1100, 1.1200, 1.1310, 1.1460.
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