THE MARKET.. 09-05-2014

EUR/USD falls on Draghi’s comments..

EUR/USD rose to 1.3993 (R3) as ECB President Draghi’s presented the official statement following the Council meeting yesterday, in which he reiterated that inflation expectations remain firmly anchored and that inflation will gradually rise in 2015. Nonetheless, it fell sharply during the Q&A after he said that policy makers were comfortable with taking additional action in June if needed. At the time of writing the pair is trading near the 200-period moving average, slightly above the 1.3815 (S1) support barrier, while the MACD entered its negative territory, confirming yesterday’s bearish momentum. However, I would keep a neutral stance for now since a break below the 1.3790 (S2) strong support is needed to trigger further bearish extensions and could pave the way towards the lows of 1.3695 (S3), in my view.
    Support: 1.3815 (S1), 1.3790 (S2), 1.3695 (S3).
    Resistance: 1.3900 (R1), 1.3950 (R2), 1.3993 (R3).forex live