The ECB hit hard, but there is a chance to counterattack

Yesterday's ECB meeting ended for the euro a complete fiasco. It is enough to look at the chart of the EURUSD pair to assess the scale of what is happening. We will not conduct a detailed analysis of what happened yesterday. Let's just focus on the key selling factor: the markets were waiting for the start of the QE folding, but instead the Central Bank announced the extension of the program until December 2018.

In general, ECB meetings have traditionally played against the euro. This is the sixth (!) consecutive meeting of the Central Bank, after which the euro bears losses. So by and large nothing new has happened. After all, in the end, the action of the ECB is a reaction to what is happening in the economy of the Eurozone. And if macroeconomic indicators begin to improve, then the position of the Central Bank may change.

Yesterday's reaction is a purely emotional moment. After all, what happened? The existing status quo was extended until the end of the year. And nothing more. And when emotions begin to prevail in the market, they (markets) lose effectiveness and there is an opportunity for profitable trades.

Friday is the day when the temptation to fix profits is maximum. And after yesterday's sell-offs, the euro has something to fix. While the pair is above the May lows, which are located at the bottoms of 1.15, it is somewhat premature to talk about activating and reviving the downtrend. Thus, our position remains unchanged - we recommend buying the pair from the current with an addition around 1.1520 and stops below 1.15. As for the targets, the minimum is about 1.18, but in general, you can fully adjust to 1.20 or 1.22.