Last week, the Council of the ECB Monetary policies announced a timetable for declining quantitative easing (QE). The announcement predicted an increase in interest rates starting second half of 2019 which led to a decline in demand for the euro in the market. The Eurozone inflation rate (CPI) was also announced to remain unchanged at 1.9%. In addition, ECB Chairman Mario Draghi will be speaking today in Portugal and is expected to affect overall market volatility.
On the other side of the Atlantic, the announcement of more contraction policies by the Federal Reserve led to an increase in demand for the US Dollar.
The Potential Reversal Zone (PRZ) is defined by the two support levels of 1.1554 and 1.1510, with the price reacting to this range significantly, on a mid-term trend basis. The price is expected to decline with a bearish trend in the short term. The support levels are 1.1554, 1.1510 and 1.1445, and the resistance levels are 1.1848, 1.2 and 1.2154 against the price increase.
