EUR/USD poised for a biggest quarterly decline

FXStreet (Mumbai) - The EUR is being offered relentlessly, pushing the EUR/USD pair down to 1.0583 levels on Wednesday, its lowest level since April 2003. The pair is poised for its biggest quarterly declined as the ECB implements its EUR 1 trillion QE program.

EUR/USD: Down 11.6% so far in 2015

The ECB’s QE program coupled with the increased speculation of an early interest rate hike in the US has weakened the EUR/USD pair 11.6% since the beginning of this year. The 11.6% loss easily eclipses the 10.65 fall we had seen during the financial crisis in the third quarter of 2008.

The pair set a fresh 10-year low of 1.0567 today on rumors national that the central banks in the euro region purchased sovereign debt for a third day today in their quantitative easing program. The pair could extend the drop even further, especially if the benchmark bond yields across the Eurozone continue to hit fresh record lows.

EUR/USD Technical Levels

The pair has an immediate support at 1.055, under which it could extend losses to the psychological support at 1.05. On the flip side, a rise above 1.06 could see the pair re-test 1.0667 levels.