Euro Price Action Post-ECB
In this webinar, we used price action to look at the Euro after this morning's ECB announcement. And while few concrete details were unveiled at this morning's meeting, the mere off-hand comment that alluded to the fact that the ECB *might* not be extending QE after March 2017 seemed to set off a quick panic-spike in the currency. And while that quick spike was shortly faded out of the market, this may be showing us something to keep on the radar for the coming months.
To read more behind this theme, please check out our article from earlier in the day Is the ECB Going to Taper or Extend QE After March 2017?
Pair Selection around Euro-themes:
EUR/USD is still in the 20+ month range that’s been prevelant in the pair since right around the time that the ECB’s QE program came online. Meanwhile, EUR/JPY may offer more attractive potential for bullish Euro plays under the presumption that Japan may be looking to do more stimulus in the coming months. There’s also a fairly interesting potential top-side setup in the pair, using the prior support point around the confluent zone of 112.00. But it’s the Canadian Dollar that's seen a recent dovish move on news that the Central Bank may be looking to re-fire the monetary stimulus cannons - so we looked at a possible top-side play in EUR/CAD. If you’d like to read more behind the current economic situation in Canada, we had summarized that just ahead of yesterday’s BoC meeting/press conference; and you’re certainly welcome to read that at the following link: How Dovish Might the Bank of Canada’s Forecasts Be?
--- Written by James Stanley, Analyst for DailyFX.com
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