Draghi overwhelmed us with its effort to boost its monetary policy
by extending easing program to another 6 months, and depo rate cut of -0.30% . However, as you can see currencies are consolidating again, hence waiting for a big move to either continue the bearish rally or to start being bullish in EURO.
This move gave us a rally of 400-600 pips last thursday in all of its cross pairs. This however does not change
the over-all sentiment that we are still bearish on EU, as we approach the announcement of most anticipated interest hike. Brace yourselves as many are positive that Fed will eventually give the public what is has been waiting for such a long time. With a good employment data last friday, this might
be a strong indicator that Yellen will finally give us her , YES. ( Oo na, tataasan ko na ang interest rate).
The market opened today with a friday’s price range of 1.0954 – 1.0837 in EURUSD. As of we speak , price broke its H1 friday’s support line and is now heading south. We still got a bearish MACD in W1 with RSI level of 43.74, and a bearish MACD in H4 with RSI level of 56. If it would indeed resume its bearish position, it would find its support on 1.0837 , 1.0754 and 1.0700 before going down to its pre-ECB monetary policy price – 1.0527.
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