During the entire week up until Forday, the common European currency drifted inside the 1.3586-1.3647 range. Still yesterday's American trading session was rather volatile for EURUSD.
Right after the ECB announced its interest rate decision, the market grew enthusiastic, thereby giving the US Dollar a chance to gain 0,29% against the common currency.
Later on, Mario Draghi held a press conference. During the conference, he gave more details on the introduced package of measures aimed at stimulating consumer credits and inflation growth up to the 2% target.
When the full package of measures was announce, EURUSD set a new local low by touching 1,3503, which was a 0,6% decline. The scale of the measures probably exceeded market expectations.
Still, after Mario Draghi shared the ECB's forecasts, mentioning positive and stable economic growth expected in 2015-2016, the market probably concluded that the introduced measures were unlikely to trigger a major decline of the Euro against other currencies. Therefore, by the time Mario Draghi answered all the questions, EURUSD had already recovered up to 1,3585.
Today's trading session is fairly calm. The currency pair is going down gradually from 1.3660. The currency pair was influenced by Germany at the beginning of the trading day. The thing is that despite Germany shooing positive industrial production figures (from -0,6% up to 2,0%), the Eurozone's biggest economy showed the weakening of the industrial sector since the index was still under pressure. Economists had expected 0,4%.
According to Masterforex-V Academy, EURUSD came out of the 1.3586-1.3647 range by breaking below its bottom after the ECB announced its interest rate decision. The price declined but then recovered, thereby making a V-shape pattern.
At this point, the situation looks ambiguous. The chances of continuation /reversal are 50%/50%.
The direction of the forthcoming momentum will depend on the price reaction to the following levels:
Resistance: 1.3666 + 1.3669 + 1.3718.
Support: 1.3618 + 1.3585 +1.3520 + 1.3502-1.3669.
