EUR/USD has dropped below 1.07, to the lowest levels since 2017. The greenback is enjoying fresh demand. The greenback is the world’s reserve currency and when investors are stressed, they flock to the American currency. There are several support lines on the way to the 2017 trough of 1.0340. 

The European Central Bank announced a new bond-buying scheme worth €750 billion, initially sending the euro higher as additional help to governments allows them to unleash stimulus. However, the move is mostly driven by the dollar. Stocks are recovering but the trend remains to the downside. 

Here is how the recent moves look on the chart. Volatility is extremely high with euro/dollar already experiencing a range of nearly 300 pips on the day. 

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