Any bullish signals shown by technical indicators early on Thursday were swiped away mid-session following the ECB monetary policy decision. Even though the main benchmark rate was in line with expectations, comments by the ECB President Draghi of continuous low-interest-rate environment and end of the Bank’s asset purchase program weighted heavily on the Euro.
As a result, the rate lost 2.28% during the previous session and consequently fell down to the weekly S2 at 1.5073. Given that the pair has been lingering near this area for several hours and technical indicators are located in the strongly oversold territory, it is likely that bulls try to regain some lost positions today.
A possible target is the 1.17 area which is limited by the 100-period (4H) SMA. Hourly moving averages are likewise located nearby.
