1:00 PM · 15 March 2023

EURUSD breaks below 1.0600, dragged by banks

Euro is the worst performing G10 currency today as concerns over the banking sector renewed. Credit Suisse stock plunged to new record low after the lender's top shareholder ruled out further injections if another call for additional liquidity was needed. Tomorrow traders will focus on the ECB policy statement, with policymakers expected to raise interest rates by at least 25 bps, with a 50% chance of a larger half-point move. 

As sentiment towards risky currencies deteriorates EURUSD pair fell over 1% on Wednesday and is testing a crucial support zone around 1.0600, which coincides with 38.2% Fibonacci retracement of downward wave started in May 2021 and upward trendline. Should break lower occur, sell-off may deepen towards local support at 1.0530, where recent lows can be found. Should break lower occur, downward move may extend towards the lower limit of the broad 1:1 structure at 1.0280, which coincides with 200 SMA (red line). 

EURUSD, D1 interval. Source: xStation5

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