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EUR/USD tests 1.3500 on Draghi’s presser

FXStreet (Edinburgh) - The shared currency is now intensifying the intraday pullback, dragging the EUR/USD to challenge the critical 1.3500 support.

EUR/USD weaker on Draghi

The pair is threatening the 1.3500 floor after the ECB added further easing measures to the already announced rate cuts. Draghi informed that the central bank will suspend the sterilization of SMP, extend the fixed rate allotment and consider some other unconventional measures if needed. He also stressed that low rate will remain at current levels for an extended period of time. Regarding the economic growth in the region, the Governing Councils sees the region expanding 1% in 2014, 1.7% in 2015 and 1.8% in 2016.

EUR/USD key levels

As of writing the pair is losing 0.62% at 1.3514 and a break below 1.3482 (low Feb.6) would target 1.3477 (2014 low Feb.3) en route to 1.3463 (low Nov.22). On the flip side, the initial hurdle aligns at 1.3600 (psychological level) followed by 1.3645 (high Jun.5) and then 1.3649 (200-d MA).

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