EUR/USD struggles around 1.0600 in the ECB aftermath

EUR/USD has steadied just above the 1.06 mark following an over 250-pip fall triggered by the ECB.

The European Central Bank announced a combination of extending and tapering its QE programme, as the bank said it will extend asset purchases beyond March 2017 but will cut the monthly pace down to EUR 60 billion per month from April 2017 to at least December 2017.

EUR/USD moved briefly higher and peaked at 1.0873 before falling sharply to bottom out at 1.0596 during the American session. The pair has spent the last hours in a tight range, presently trading at 1.0615, 1.26% down on the day.

The US dollar was the main beneficiary in the FX space, strengthening across the board in the ECB aftermath, while focus now turns to next week’s Fed decision amid growing expectations of a rate hike.

EUR/USD levels to watch

In terms of technical levels, next supports are seen at 1.0584 (Dec 1 low) and 1.0519 (Nov 24 low) ahead of its 1-year  low of 1.0504 (2016 low, Dec 5). On the flip side, resistances could be found at 1.0795 (Dec 5 high), 1.0883 (50-day SMA) and 1.0923 (Nov 11 high).