EUR/USD ends the week near 2016 lows after ECB

EUR/USD pulled back sharply from weekly highs and is on track to close the day near 2016 lows in the wake of European Central Bank decision to extend its QE programme although at a slower pace till December 2017.

The US dollar was the main beneficiary in the FX space, strengthening across the board in the ECB aftermath. EUR/USD dropped more than 350 pips over the last sessions and hit a low of 1.0530 on Friday. The pair was last trading around 1.0550, down 0.74% on the day and 1.09% lower for the week.

Now focus turns to next week’s Fed decision next Wednesday, with a 25 bps rate hike mostly priced in among investors.

EUR/USD levels to watch

In terms of technical levels, next supports are seen at 1.0519 (Nov 24 low) ahead of its 1-year  low of 1.0504 (2016 low, Dec 5) and 1.0499 (Dec 3 2015 low). On the flip side, resistances could be found at 1.0629 (Dec 9 high), 1.0795 (Dec 5 high), 1.0869 (50-day SMA) and 1.0923 (Nov 11 high).