EUR/USD declines on dovish ECB, good to buy on dips : FxWirePro | December 15, 2017

EUR/USD 0.08% declined almost 100 pips from the high of 1.18627 on dovish ECB statement and better than expected U.S retail sales. The pair declined till 1.17647 and is currently trading around 1.17838.

ECB has kept its interest rates unchanged and central bank also confirmed continuation of QE till Sep 2018. The continuation of QE was viewed as dovish by markets. The ECB upgraded growth and inflation outlook.

U.S retail sales came at 0.8% in the month of November compared to 0.5% gain in October and up by 5.8% yearly basis compared to 4.9%.

Technically, the pair is facing strong resistance at 1.18548 (61.8% fibo) and any minor bullishness can be seen only above that level. Any convincing break above 1.18548 will take the pair to next level till 1.1900/19612 (Nov 27th 2017 high).

On the lower side, major support is around 1.1700 and any break below will drag the pair to next level till 1.1660/1.1600. The minor support is around 1.1755.

It is good to buy on dips around 1.1765 with SL around 1.1700 for the TP of 1.1900/1.19250.