EURUSD dropped like a stone after ECB president’s Draghi dovish speech yesterday. The ECB president stated that the current policy needs a reassessment and that could happen as early as in December. As I already explained in my INTERVIEW with Fxstreet, ECB is closely monitoring China’s situation and FED activity too. If China is slowing down that will also reflect on Eurozone exports and 2 % inflation goal will be hard to meet. Additionally ECB can always cut rates but as I had already explained in the interview , investors acted as conduits for talking down the EUR yesterday.
Technically EURUSD is aiming for 1.1040 zone then if the H4 closes below 1.1040 next target will be 1.0975. We can see huge head and shoulders pattern and the re-break of 1.1210 important swing point (historical buyers/now moment sellers). 1.1180-1.1200 zone is important confluence point (H3, DPP, hist vs now moment sellers, 38.2) and if the price pullbacks to the zone we can expect further selling. IF the price doesn’t make any pullback I will be monitoring H4 close below 1.1040 as the price below should target 1.0975.
The analysis and the article presents Nenad's opinion. Remember, financial trading is highly speculative & may lead to the loss of your funds. Proper risk management is the Holy Grail of trading.
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