1-hour chart… nice breach of the falling trend line, we would have a sort of bullish flag breakout of the current hourly candle closes above the falling trend line. Draghi is trying hard to kill the EUR rally, but it isn’t working… everyone knows taper has already begun for countries like Germany as the ECB has fallen short of the mandatory bond purchases for three months to June.
A nice falling trend line has been established following the ECB’s dovish rant. The spot looks set to test 1-hr 200-MA – 1.1461. That would push the RSI into the oversold territory, so further losses are to be viewed with caution…
Daily chart – rising trend line coming from Apr 17 low and May 11 low offered supp around 1.1497 has been breached. ECB still stands ready to boost asset purchases if required… now this is likely to disappoint the EUR bulls..
The horizontal lines represent key support levels: 1.1467, 1.1436, 1.1376
The descending trend line is also seen offering support around 1.1450