EUR/USD whipsaws from day's high to day's low
The ECB provided more details than initially anticipated, and while the initial reaction saw the euro gain as the ECB announced an end to QE and expected tapering from October to December. The focus now seems to be that forward guidance that they will keep rates on hold until the summer of 2019 - and that means we're likely to only see it come about around Q3 2019, which rules out Q2 2019 at this point.
Update: The pair now touches a low of 1.1719 on the day.
The tapering and QE end date is a euro positive in my view, but the rates part not so much. Regardless, the market is carrying on with the "buy the rumour, sell the fact" play. Money market pricing is also slashing bets of an ECB rate hike now, and that is partly contributing to the weakness in the euro we're seeing.
A break of the 100 and 200-hour MAs now mean that sellers are in control of near-term direction in the pair and the next key level to look out for to the downside is 1.1714 followed by bids near the 1.1700 level.
