The Single currency came under pressure last week after the European Central Bank announced to half the asset purchase program to EUR 30B a month, down from current EUR 60B a month and to extend the program by nine months until end of September 2018 or beyond have spooked the markets. The Euro has slumped from $1.1826 on 26^th of October to as low as 1.1573 post ECB last week before meandering in the range of 1.1610-1.1625 this morning.

 

The sharp decline on the EUR/USD over the last few weeks suggest that the pair may have found a (temporary) top at $1.2092 on 8^th September. Besides, on the hourly chart, the price action of the EUR/USD suggests that there could be scope for an acceleration downward to $ 1.1470 followed by $1.1284 in the coming weeks. On the other hand, a move back above $1.1728 might invalidate the dovish count!

 

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