The Euro plummets

Today’s comments by the European Central Bank has caused the Euro to plummet due to the fact that the central bank kept its interest rates unchanged. We must keep in mind that interest rates is what primarily moves a currency. Therefore, if the ECB does not hike, the Euro has no reason to rally. On the daily chart of the EUR/USD we can see that the pair drops more than 200 pips from the 1.1833 level to below the 1.1600 level. In case of continuing falling, the 1.1500 level may act as support, but a breakdown of that level could accelerate its bearish momentum. On the other hand, due to the fast drop, we could see a profit taking pullback to the 1.1700 level or the 1.1833 level. For now, the angle of inclination and the separation of the 55 day EMA with the 200 day EMA is indicating a bearish trend.