The EUR/USD has fallen away sharply in the month of February and there was more negative news of Friday.

An ECB member came out and suggested they could be looking at offering more loans to banks. This is the same sort of thing that happened at the height of the European Debt Crisis in 2012.

In other words, the move doesn’t bode well for the state of the Eurozone and is only likely to add to the selling pressure that we’ve been seeing.

We also have the ECB minutes to be released this week, however, there is little chance of anything new coming out of the already dovish Mario Draghi led team.

Inflation will also be closely watched given how low it is – currently 1.4% and a long way from the target rate of 2-3%.

Technical Outlook

The EUR/USD has been following technical support and resistance really cleanly with 1.1300 is the major support level that got taken out last week.

If price continues to hold the 1.1300 level then there is a chance for a bounce.

If price can break and hold below 1.1300, then that opens the door for a move to 1.1260, 1.1220 and ultimately 1.1200.