• The EURUSD declined as much as 252 pips on ECB news
• Today’s Range measures 138 pips
• breakouts begin 1.0970
The EURUSD is consolidating this morning after yesterday’s 252 pip decline. Yesterday’s Euro move was broad based, and predicated on the dovish expectations laid out during remarks made by ECB President Mario Draghi. Traders are now watching to see if the Euros momentum is set to continue against not only the US Dollar but also against other major currencies. Currently the EURUSD is trading near daily range support, which is found at the S3 at a price of 1.1038. If prices remain supported here traders will look for prices to potentially test values of resistance, including the R3 found at a price of 1.1177. A move of this nature would suggest that traders are taking profits after yesterday’s decline, and are potentially looking to flatten out their positions prior to the weekend.
If yesterdays is set to continue, traders will look for a fresh price breakout below 1.0970. A move to this point would indicate prices are moving to new weekly lows below the S4 . Traders looking to join the trend, may begin to look for a 1x extention of todays 138 pip trading range towards a price target of 1.0832. While a complete reversal is not out of the picture, prices would have to rise back above 1.1246 in order to attempt a breakout above today’s R4 . In either breakout scernio, traders should determine the markets chosen direction before initiating any new posisions.