EUR/USD Asia Price Forecast: Euro stays under pressure despite Fed’s QE Infinity, trading sub-1.0800 figure in 37-month lows

 

 

After an exceptional decline, EUR/USD is stabilizing near 37-month lows as the Fed announced its largest stimulus ever. The Quantitative Easing could have essentially no limit. “The Federal Reserve will continue to purchase Treasury securities and agency mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions,” the Fed stated.     

 

 

 

The euro is consolidating losses near monthly lows while trading below the main SMAs. As a matter of fact, the 50 SMA crossed below the 200 SMA which adds to the bearish case. Earlier, bulls attempted a reversal up this Monday (Fed’s QE announced) but met selling interest near the 1.0800 figure. In this context, it seems that only a strong catalyst could help the euro bulls as the sellers remain firmly in control. A break below 1.0723 could lead to more weakness towards the 1.0667 level which is near last week’s lows. If the market loses the above-mentioned level to the downside, the spot could accelerate further toward the 1.0500 figure.