The ECB cut rates in their monthly decision by 10 basis points. This was expected by some analysts but is more of a surprise in that most still did not expect a rate move (including myself ). The price has moved below the 1.3014 level (which is now resistance) and the sellers are firmly in control (longs are still wrong and nervous).
The market will now be targeting the 1.3000-1.30168 area. The 1.3000 level is lower channel trend line on the daily chart below and the 50% retracement of the move up from the July 2012 low to the 2015 high. That comes in at 1.30168.
EURUSD breaks below the 1.3104 lows (now resistance). 1.3000/16 is the next target
Although this is a nice round number, and I always like the 50% test as a support level to take some profit, be aware that it is just the next target. The EURUSD trend is still down. The price is stepping down and should not trade now back above the 1.3104-09 area. Where can it go? The 1.27865 area is in play (see chart below). Not today of course but on a break of 1.3000, this becomes the next major look from a technical perspective.
The next major target comes in at 1.27865
