The EUR fell sharply and stocks higher, after the ECB’s dovish taper announcement.
Full story: Beginning of the end of the QE
EURUSD sold-off heavily overnight and extends the selling pressure in the Friday Asia trade as well. The price fell below the 100MA, made a low at 1.1624 (12.10PM AEST). Before retracing to 50.0% fib reaction (June-Sep rally) it has spotted with a bearish H&S pattern. Yesterday’s sell-off confirmed the right-hand shoulder and a neckline breakdown too. Shoulders seem at 1.1910 and 1.1880. Resistance move down to 1.1730 from 1.1880
We are watching at 1.1470 ABC correction target and 1.1430 it’s 38.2% ( Jan-Sep rally) fib reaction. The medium-term support finds at 1.1245 it’s 200DMA and 1.1200 20MA (monthly).
Intraday support finds at 1.1600.
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