ECB Decision Weakens EUR USD

The EUR USD is trading lower at the midsession.  Traders are reactingnegatively in sympathy with the break in the British Pound and alsobecause the European Central Bank did not deliver the news that theywanted to hear.

Intraday Analysis

EUR USD

The EUR USD is trading lower at the midsession.  Traders are reacting negatively in sympathy with the break in the British Pound and also because the European Central Bank did not deliver the news that they wanted to hear.

This morning the ECB decided to leave its benchmark interest rate alone and commented that interest rates are “appropriate” for current economic conditions.  This came as a surprise to some traders who believed the recent improvement in the Euro Zone economy would lead to a more hawkish comment.

The post-meeting commentary may have also served as a message that the economic recovery is not moving along as fast as traders had anticipated. This reasoning is giving traders an excuse to close out long positions.

Technically this market is currently finding support at the previous main top and breakout price at 1.4337.  Based on the short-term range of 1.4007 to 1.4447, watch for a correction back to 1.4227 to 1.4175 before new buyers surface.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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