Forex: EUR/USD pierced 1.3500

The shared currency is accelerating its descent on Wednesday, piercing for a few moments the key support at 1.3500 as risk aversion is intensifying.

With focus on tomorrow’s ECB gathering, analyst Kristian Kerr at DailyFX commented “ With the euro having rallied more than 5 big figures since the January meeting, market participants are likely to be nervous that such aggressive strength will prompt a policy response from the ECB or at minimum dovish jawboning from Mario Draghi in the press conference that follows”.

As of writing, EUR/USD is losing 0.56% at 1.3506 with the immediate support lying at 1.3459 (low Feb5) ahead of 1.3415 (low Jan.29) and then 1.3377 (MA21d).
On the upside, a climb beyond 1.3598 (high Feb.5) would aim for 1.3620 (intraday support Feb.4) and then 1.3660 (high Feb.4).