EUR/USD rallies despite radical ECB easing
Mario Draghi must be waking up wondering what he has to do to devalue the euro, with EUR/USD breaking higher despite initial losses. Interestingly, those initial losses didn’t break through $1.0808 support, yet the resulting bounce broke $1.1059 resistance – certainly a bullish move.
We are seeing the pair pullback this morning and are therefore looking for a support to instigate further gains. The obvious area of support would be the zone between the 38.2% retracement of $1.1067 and the key previous resistance of $1.1059.
As such, while the short-term looks like we could see an extension of this pullback, another move back towards $1.1218 seems likely before long.