After Mario Draghi speech last week and new promises, we witnessed the Euro print a two long, red bars downwards.
Once again, external intervention and news are skewing the well-respected setups of Program Trading on the daily timeframe.
Nothing new there. In my opinion price is still moving to retest the 1.3663-1.3721 area of support that pushed the price higher since beginning of April. Although this area (see below chart) has dipped in, price actually never pierced the 1.3662 level.
If that was to happen, the Euro would be positioned for a larger retrace into the 1.3020. The 50% of the trace from July 2013 lows to recent highs.
Let’s see if Mario Draghi has actually saved the Dollar, for now, and will attempt improving the European economy by further monetary easing.
Notice that price projections in my method are not from/to random levels and do not follow Elliot Wave, DiNapoli levels or other methods, but rather a proprietary method based on modeling effects of Program and Algorithmic Trading on price.
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