EUR/USD extends losses, approaches to 1.0600

The euro extended losses versus the greenback over the last hours and is approaching to the 1.06 mark as investors continue to focus on the ECB dovish element.

The European Central Bank announced a combination of extending and tapering its QE programme.  The ECB will extend purchases beyond March 2017 but will cut the monthly amount down to EUR 60 billion per month from April 2017 to at least December 2017.

EUR/USD initially moved up and reached a peak of 1.0873 only to turn lower. Having lost more than 250 pips over the last hours, EUR/USD is currently trading at the 1.0615 area, recording a 1.26% loss on the day.

EUR/USD levels to watch

In terms of technical levels, a break below 1.0600 would pave the way towards 1.0584 (Dec 1 low) and 1.0519 (Nov 24 low) ahead of its 1-year  low of 1.0504 (2016 low, Dec 5). On the flip side, resistances could be found at 1.0795 (Dec 5 high),  1.0883 (50-day SMA) and 1.0923 (Nov 11 high).