Technical analysis and trading recommendations - https://fxpcm.com/fx/eurusd-decline-after-breakout-level-11285-22042016
Overview and Dynamics
ECB meet market expectations and left interest rates unchanged, the key refinancing rate - at 0.0%, the deposit rate - at the level of (-0.40%), the rate on ECB loans - at a level of 0.25%. asset purchase program is also stored in the same volume - at the level of EUR 80 billion per month.
ECB President Mario Draghi said that rates will remain at current levels or lower for a long time, perhaps even after the completion of QE.
After the ECB decision on rates EUR / USD exchange rate rose above $ 1.1395, but in the course of the press conference is also active the EUR / USD began to decline, down to the end of performances M.Dragi to the level of 1.1290. Near the beginning of this level and the pair finished the day yesterday. The volatility in the pair was 129 points.
Most likely, taking into account the end of the week, and yesterday's events, related to the decisions of the ECB and the performance M.Dragi and today due to lack of strong drivers of news on the calendar, the EUR / USD will remain near the current level is between the 1.1270, 1.1320.
A break of support level 1.1285 (Fibonacci correctional level of 23.6% to the last wave decline from 2014 highs) will provoke a further decrease pair EUR / USD.
The attention of investors is gradually will switch to the upcoming Fed meeting on 27 April. Raising rates on it, most likely, will not happen. However, from the accompanying statements by the Fed will depend on the further dynamics of the US dollar in the financial markets.
Based on the overall picture that is present in the financial market, and from entering the US positive data, there is reason to assume a gradual changeover to the general trend of the US dollar growth.