What levels will be eyed. Narrow trading range this week. Be on lookout for an extension of the range.
The ECB kept rates unchanged. The ECB currently buys 60B euros worth of assets per month. The inflation is not being helped by lower oil prices.
Technically, the pair is trading near low level currently. The US pre-market equity futures area now trading positively and that has (at times) tended to weaken the EURUSD. The pair is looking to test the 200 hour MA ( green line in the chart above). That moving average has held support in the London/European morning session so far. A move below should see the price look toward the 1.0859. That was the low on Tuesdays trade, and also a swing low on Friday.
On the topside the EURUSD traded as high as 1.0920 and 1.0915 at it's two peaks. The 100 hour MA comes in at 1.0903. A move above those levels will look toward 1.0939-45. There have been a number of swing highs near this level.
The thing to consider for today is the range is narrow at 54 pips vs 95 average over the last 22 trading days. Also the range for the week at 117 pips is the lowest trading range going back to December 2014 (so over a year). That is not likely to remain that way. So be on the lookout for a range extension below 1.0859 or above 1.0975.
Which way do you fancy? The tilt from Draghi should provide a clue. The price action needs to confirm it. Watch the tech levels.
