EURUSD traders get a reminder that the ECB is still coming out all guns blazing
There's nowt like the smell of a burning euro in the morning and the double act of Coeure and Noyer have been out with the flamethrower
In the space of a few minutes the ECB's "lower bound" just got moved lower and QE longer. That's how the market has taken the comments. There's also the fact that the ECB are loading up ahead of the summer months where liquidity suffers. The market had been chatting about what they would do over the summer and now we have the answer
EURUSD has had the rug pulled out and we're holding up ahead of support last weeks lows at 1.1130. 1.1110/15 is further support. The big level to watch is if we blow through to the old 1.1040/50 area which was the range top recently
EURUSD H4 chart
I think it's all rubbish personally. There's no real reason right now why the ECB should be thinking about shifting the goalposts but it's obviously caught the market on the hop. Ok they're going to load up ahead of the summer months but even that shouldn't be panicking the market. I've taken a small long here at 1.1180 and I'll add in small until the 1.1040 level. As far as I'm concerned there's nothing that's changed fundamentally in Europe or the US that should see this move sustained. The market may have other ideas though
