ECB’s Benoit Coeure reiterated comments made yesterday about embarking on QE in 2015 (See: ECB’s Coeure says eurozone is not falling back into crisis). The comments have sent the EURUSD below the 100 hour MA, trend line support at 1.2415, and now the 200 hour MA as well (at the 1.2403 level).
Why didn’t it sell off yesterday when similar comments were made?
The difference from yesterday and today, is the USDRUB is back down, and other influencing instruments are also steady (see a snap shot picture of some of the major market influencing instruments).
The market influencers. USDRUB falls back down today.
The next target on the downside is the 1.2357-59 – lows from the November. Look for sellers against the underside of the trend line at 1.2415 now but risk remains through the FOMC decision. Traders short, can also now use the 100 hour MA as a risk defining level. The price held against this support level yesterday and again today, until the break. What was support becomes resistance and the level was holding up nicely.
