EURUSD, Daily
The ECB cut the deposit rate by 10 basis points to -0.3% from -0.2%, while leaving the key refinance rate unchanged. European stock markets have sold off in the wake of Draghi’s disappointing measures since the central bank’s cut in the deposit rate was less than anticipated and the widening of QE purchases not as aggressive as the markets would anticipate.
At the time of this writing, the EUR trades above the 1.08 level, up nearly 280 pips for the session; most of the market was caught by surprise as market sentiment had been poised for a downside move. However, the week is far from over as tomorrow’s all important and widely anticipated U.S. Non-Farm payroll report could offer traders even more surprises.
Technically, the EURUSD could possibly return towards resistance area 1.1090. For the moment, traders may seek for higher prices before entering any new short positions.
Janne Muta
Chief Market Analyst
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About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
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