The EUR/USD pair continues its downward trend. The European currency was under pressure from commentaries by ECB President who stated that the Regulator is ready to further ease its monetary policy. In addition to QE expansion, deposit rates may be cut that was considered by market participants as a signal to enter short positions.
Inflation in the eurozone remains below the target level. In October, the indicator gained only 0.1%.
The US economy, on the contrary, tends to grow, thus, most analysts suggest that the Fed will raise its interest rates at the upcoming meeting. This decision will negatively affect the single currency.
Support and resistance
Support level: 1.0550.
Resistance level: 1.0614.
Short positions can be opened after the breakdown of the level of 1.0600 with the target at 1.0550 and stop-loss at 1.06270.