The Euro was trading sideways during the first part of Thursday. A significant volatility was introduced by the ECB mid-session. The Euro initialy strengthened against its American counterpart following the release of the bank’s written statement, but plunged 100 pips within a couple of hours in response to Draghi’s more cautious tone during the press conference.
The rate once again normalised later in the evening and early today, as a fall below the 1.2340 mark was restricted by the 200-hour SMA and the monthly PP.
Technical indicators being located in the strongly bearish area suggest that the pair should be tended north in this session, thus approaching a resistance cluster formed by the 55– and 100-hour SMAs circa 1.2380. Meanwhile, the rate should not exceed the 38.20% Fibo at 1.2235.
