The common European currency collapsed against the Dollar after the ECB President Draghi cut the size of asset purchases but prolonged the quantitative easing program for nine months. From technical point of view, this event signified a breakout from symmetrical triangle pattern. In other words, the pair bounced off from a combined resistance formed by the 55-day SMA and the upper trend-line of a dominant descending channel. During today’s trading session bulls are likely to try to recover the Euro. However, these attempts are expected to fail, as the pair will need to cross the monthly S1 at 1.1658 and the weekly S2 at 1.1662. On chart this scenario even more unlikely, as the northern side there is additionally secured by the 100-day SMA.
