The Euro (EUR) inched lower against the US Dollar (USD) on Wednesday, decreasing the price of EURUSD to less than 1.1750 following some key economic releases. The technical bias remains bearish because of a lower low in the recent downside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.1740. On the downside, a support can be noted near 1.1310, a key horizontal support ahead of 1.1209, the low of last major downside move and then 1.1049, the 50% fib level as demonstrated in the given above chart. The technical bias may turn bullish if the pair breaks the 1.2478 resistance level.
On the upside, a resistance can be noted around 1.1773, the 23.6% fib level ahead of 1.2456, a trendline resistance and then 1.2555, a major horizontal resistance area as demonstrated in the given above chart.
ECB Chief Mario Draghi
The European Central bank has no plan to issue a digital currency because the underlying technology is still fragile and the use of physical cash still high in the euro zone, the ECB president said on Friday.
The sudden proliferation of cryptocurrencies such as Bitcoin, essentially a privately created online token, has sparked a global debate over whether central banks should also launch their own digital money.
This would give holders a direct claim on the central bank, bypassing the banking system and potentially revolutionizing the way monetary policy is carried out.
He added that technologies such as distributed ledgers “require substantial further development” and that he saw no “concrete need” to issue a digital euro.
Trade Idea
Considering the overall price behavior of the pair over last few weeks, buying the EURUSD around current levels can proved to be a good decision in short to medium term.