EUR/USD drops 300 pips as ECB launches QE

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Dukascopy Bank SA
"One thing is clear, the ECB's decision shouldn't take the politicians off the hook, they should still do what's necessary."
- Dutch Finance Minister (based on CNBC)

Pair's Outlook
EUR/USD pair plummeted on Thursday, as the ECB unveiled a plan to buy 60 billion of securities monthly until September 2016, including government bonds. The cross dropped around 300 pips, from 1.1610 down to 1.1340 on Friday's morning. As a result, it has crossed two major support areas at 1.1460 and 1.1390. Therefore, the mid-term outlook for single currency will remain strongly bearish and a rebound is highly unlikely in the near term. 

Traders' Sentiment
On Friday's morning long and short positions on EUR/USD cross are staying at a completely equal level of 50% for both. Meanwhile, pending orders have turned to be slightly positive this morning as the share of longs increased from 33% to 51%.

© Dukascopy Bank SA

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