ECB conference, May 8th 2014

Good day traders, we had a very good week on the floor last week as we were following the ECB press conference closely on Thursday where EURUSD reached 1.3992 during the statement of the Mario Draghi, the president of the ECB. We start selling EURUSD and it went down around 150 pips (1.3832) on that day and it kept on going even lower on Friday for around 80 pips (1.3745). On Monday, it was a very quiet day for the pair but Tuesday we had another 70 pips to the downside since more pressure has came on the back of a report on the Wall Street Journal that the Bundesbank is willing to back the ECB with its policy including negative rates on bank deposits, long terms loans on fixed-rates to banks that if the ECB staff inflation for 2016 projections support the case. My view is the EURUSD trading in a range now between 1.3778 and 1.3950 and I do not think it will go above 1.405 anytime soon unless something serious happens in Ukraine as the US Dollar will go down. Otherwise, if it breaks 1.3670, then we are looking to get to 1.3640. If it keeps on going down then we are looking to get to 1.3480 as it is the Fibonacci starting point for this upward move.