Today ECB has slightly surprised everyone with their plan to start QE at 60bn vs estimated (leaked) 50bn per month. This would imply 1.08tn until Septemer 2016. This is slightly less than the end of 2016 expected, but it is the size of QE that is currently the focus. Some were disappointed with the start only in March rather than immidiate and this caused some volatility and direction uncertainty in the first minutes of the announcement. The Fed reserve has taken some time to adjust and change their approach to QE with the 3 stages and I believe this is what ECB will be looking at now. Full focus will be paid to inflation and signs of improving economy to determine whether QE will be increased or decreased.
For us traders it most likely implies a choppy grind downwards towards parity and selling corrections in this trend has already proven to be profitable for many.
Since this was a strong move the correction shouldn't be greater than 38.2% fib line of the today's move. Keep a stop loss just in case Friday escales to a major profit taking session.
For us traders it most likely implies a choppy grind downwards towards parity and selling corrections in this trend has already proven to be profitable for many.
Since this was a strong move the correction shouldn't be greater than 38.2% fib line of the today's move. Keep a stop loss just in case Friday escales to a major profit taking session.