The result of Draghi's speech was that $EURUSD declined all the way down to 1.1 again, breaking down two and several support zones in the process.
Now, back near 1.1, which is a critical structure zone, $EURUSD completed a pattern.
This , and the 1.1 structure is probably what separates $EURUSD from reaching equilibrium.
The X point is near 1.08.. but the deeper and lower $EURUSD will try and reach, the further it will be from the .. basically confirming breakdown and ruling out the option of a False Break.
Two critical zones for bulls to monitor this week. Fed's Week:
1.1 - The price must close the week above it.
1.11 - A close above 1.11-1.115 can be considered a signal that last week's breakdown was a False Break.
Now that Draghi punched the EUR down, it is Yellen's turn to deal with the strength of the Dollar.. Currencies war in play. Will Yellen deliver another blow to USD? Hesitation about rate hike would do the trick.
No doubt we've seen a major signal last week coming out of EURUSD ... but in these crazy days, it is good to keep open mind for even "crazy ideas"
This analysis is part of this week's Weekly Markets Analysis.
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Pattern still valid.