The EUR/USD suffered a severe drop yesterday, due to the statement of a senior official of the ECB who said that the regulator plans to maintain its soft monetary policy and hold interest rates at the current level of 0.5% in the coming year; also fueled by Draghi's speech last Thursday that the rates will remain low for extended period.
Observing our daily chart, we see that the euro reached the minimum of the 4th of April, which was also nearing break. Now, this morning, is showing a strong rebound, which we believe could have a stop at 1.2906 fractal, in this area we recommend selling with goals in the 1.2745 fractal. The MACD indicator is in the oversold zone, which is more likely to continue upward bounce.
If you need personal consultation, Skype: gerardofx or contact me via e-mail: gerardo.porras@analytics.instaforex.com
