The European currency crashed against the US dollar after the decision of the European Central Bank, which was in line with most forecasts and economists.
In the morning, data that showed that consumer confidence in Germany fell slightly was released..
According to the report of the GfK research center, the leading index of consumer confidence in Germany fell to 10.7 points in November from 10.8 points in October. The main concern of German consumers was inflation, which in September 2017 was 1.8%.
Today, as well, data were published according to which bank lending to private companies in the eurozone again increased in September. According to the report, lending to companies compared to the same period last year increased by 2.5% after an increase of 2.4% in August. Lending to households in September increased by 2.7% compared to the same period last year. The monetary aggregate M3 in September increased by 5.1% compared to the same period of the previous year. Economists forecast an increase of 5.0%.
The main decision this week was to keep the European Central Bank's refinancing rate unchanged, at 0.0%. The rate on deposits also remained unchanged at the level of -0.4%.
The ECB stated that rates will remain at the current level for a long time, long after the quantitative easing, which gave an immediate pressure on the European currency, which collapsed against several other world currencies, especially against the US dollar.
The ECB also announced changes in the policy of quantitative easing.
As part of QE, the purchases will now amount to 30 billion euros a month, and this program will begin to operate from January 2018. Purchases under the QE will continue until September 2018, and if necessary, some time after this period. The regulator noted that if the prospects deteriorate again, the council may increase the size and prolong the duration of QE.
As for the technical picture of the EURUSD pair, the large support level in the 1.1750 area is currently being worked out by the sellers, and, most likely, the current downward movement will continue.
If we look at the daily chart, we can clearly see the reversal "head-shoulders" model, which will lead to a larger decline of the European currency by the end of this year. All the attention of traders, in case of further reduction of the euro, will be focused on the support of 1.1680.
