EURUSD - Explodes Higher Off Key Support Post ECB | Mar 10

eurusd price action

EURUSD – Explodes Higher Off Key Support (1hr chart)
The ECB surprised most analysts and traders today initially by cutting rates which caused the pair to nosedive about 150 pips in an hour.

However, during the ECB presser Draghi said future rate cuts is unlikely, and a rapid reversal ensued launching the euro almost 400 pips higher.

To contrast, for the history of the Euro, anytime we’ve seen a 1%+ move downward intra-day on the EURUSD, we’ve never had a positive reversal like today (~3.2%), so this move is unprecedented to say the least.

From what I’m seeing on the institutional side, most banks and traders were caught off guard by this with most making the wrong call staying and …

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