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EURUSD : Rebounded from Six-Week Lows

EURUSD today rebounded from the six week lows at 1.3695.On the 4 hour chart of EURUSD the pair might find resistance from the previous support level at 1.3752 and move down.

 EUR earlier suffered from losses after the ECB President Mario Draghi said that the central bank might use unconventional instruments to fight with record low inflation in the euro zone. However the pair found support after two of the ECB policy makers showed contradictory reviews over the prospects of implementing QE. Yves Mersch an ECB policymaker said that although central bank was working on plans for large scale asset purchases to improve inflation, but the program is not required. This month would be important in terms of growth in euro zone as key measures if inflation and growth in this month will determine policy choices for the foreseeable future. If the price levels remain low and the purchasing manager’s index reading shows no sign of pickup, ECB will act on it and this might push EUR lower significantly.