EUR/USD Into A Weak Position

EUR/USD dropped to a bottom level of 1.1018.

The euro lost territory in the European morning hours amid expectations that the ECB could follow stimulus package at tomorrow's monetary policy meeting.

Now, the pair trades at $1.0996, which is a decline of $0.00470 or 0.43% from the previous close of $1.10431.

The daily range is from $1.0993 to $1.1055, while the trading volume is 99.121K.

Higher price levels imply in that the market could witness some short covering. With that into account, the market direction will be heavily influenced by the magnitude of rate reductions (10 or 20 bps) and any the report of QE as well.

The missing solid boosting measure are very likely to have a minimum positive affect on the economic confidence and inflation forecasts as well.

EURUSD chart