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EUR/USD finds support, remains on track for a daily loss

  • EUR/USD finds support ahead of 1.1200 and recovers ground
  • The euro shrugged off a report from Der Spiegel that said the ECB was planning to resume bond purchases

The EUR/USD pair found support ahead of the 1.1200 level and recovered some of its intraday losses, although it remains on track to close the day and the week in red.

ECB allegedly to resume bond purchases

The shared currency continues to trade near daily lows although it remained unamused by a report from German news magazine, Der Spiegel, suggesting the European Central Bank (ECB) was planning to resume its bond buying program by November.

The restart of its easing programme is aimed at supporting the Eurozone economy via higher investment and consumption The magazine also reports the ECB is considering a plan that would raise the cost of banks parking funds at the central bank, in order to boost lending.

Market still assessing surprising comments from Fed’s James Bullard, who said a 25 basis points rate cut seems appropriate given the current US economic conditions, practically ruling out a larger cut at the July meeting.

EUR/USD levels to watch

EUR/USD is currently trading at the 1.1230 zone, still 0.44% down on the day and on track to post a weekly loss of around 0.37%. From a technical perspective, short term support levels are seen at 1.1193 (monthly low, Jul 9) followed by 1.1181 (Jun 18 low) and finally 1.1106 (2019 low,  May 23). On the other hand, a breakout of the 1.1280 (20-day SMA/Jul 18 high) would target 1.1317 (200-day SMA) and then 1.1412 (Jun 25 high).

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