EUR/USD dips below confluence of Fibo support

The common currency is losing grounds amid flat action in the European equities, with EUR/USD pair now trading below the confluence of Fibo level - 1.1257 (61.8% of 1.1714-1.0517) + 1.1253 (100% Fibo of 1.0517-1.1060-1.0711).

Offered at 1.1285

EUR found bids in early Asia and rose to a high of 1.1285 before fresh offers carried it to support around 1.1257-1.1253. Fibo support levels were taken out after ECB’s Villeroy and Coeure assured markets the central bank has not run out of ammo and will do whatever is necessary to achieve its HICP inflation target.

The pair printed a low of 1.1235, before recovering back to near 1.1250 levels. Markets now await US existing home sales and Chicago Fed national activity index release.

EUR/USD Technical Levels

A break below 1.12 (5-DMA) would open doors for 1.1173 (23.6% of 1.0517-1.1376). A violation there would expose 1.1115 (50% of 1.1714-1.0517). Conversely, breach of immediate hurdle at 1.1293 (23.6% of May 2014 high-Mar 2015 low) would shift risk in favor of a rise to 1.1342 (Thursday’s high) and 1.1376 (Feb 11 high).