EUR/USD New York Price Forecast: Euro off 37-month lows as Fed announces open-ended bond-buying operation

 

 

After an above-average decline, EUR/USD is bouncing from 37-month lows as the Fed announced TALF, a new aggressive action to confront disruptions. The US dollar index is down across the board on an intraday basis.

  

 

The spot is challenging the 1.0790 resistance as the market is trying to stabilize after the decline in recent sessions. A correction is underway and if the market can find resistance near 1.0790, bulls might lift the market to the 1.0857 resistance. However, since the underlying bias remains strongly bearish for EUR/USD, any pullback up might be limited. On the other hand, support can be seen near the 1.0723 and 1.0667 price levels, according to the Technical Confluences Indicator.