EUR/USD: Support to be tested again at 1.1160?

FXStreet (Guatemala) - EUR/USD is currently trading at 1.1184 with a high of 1.1240 and a low of 1.1160.

EUR/USD has been on the offer despite the better tone of the EZ economy. However, we are about to embark on sovereign QE, so of course this is going to weigh on the Euro for the time being. However this better tone of, certainly the German economic data, should help support inflation expectations in the Eurozone and boost the belief that the ECB can beat the deflationary threat according to Jane Foley, Senior Currency Strategist at Rabobank who also believe that March has all the makings of a volatile month for EUR/USD.

"Stronger US data have the potential to feed on the EUR’s current vulnerability and push EUR/USD lower. That said, there is a strong risk of benign inflation data. In our view, soft price pressures suggest the Fed is unlikely to hike rates before year-end and this could undermine the USD. Support is at the recent low near EUR/USD 1.1160." The pair is currently heading for this price zone yet again which protects the 2015 lows at 1.1097.