EUR/USD continues to fall, makes fresh 14-year lows

EUR/USD resumed the decline following a short-lived, limited bounce attempt seen during the New York session, and it has dropped to fresh 14-year lows in recent dealings.

EUR/USD stretched down and hit its lowest level since Jan 2003 at 1.0365, but managed to find support ahead of that month’s low, which was 1.0334. At time of writing, the pair is trading at 1.0385, down 1.39% on the day, and around 300 pips below pre-Fed levels.

After the ECB extended its QE programme last week, the Fed decided to hike rates and offered a more hawkish tone for 2017, fueling the policy divergency that’s been weighing on the pair throughout the year.

EUR/USD technical levels

In terms of technical levels, next supports could be found at  1.0334 (Jan 200 low) and 1.0300 (psychological level). On the flip side, short-term resistances are seen 1.0500 (psychological level and former support level), followed by 1.0624 (10-day SMA) and 1.0669 (Dec 14 high).