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Forex pairs in this Article » EUR/USD (Chicago) - EUR/USD has printed higher highs and lows throughout the American trading session recovering over 30 pips so far.

Decisions, reactions

From the speech by Mario Draghi, ECB President, “First, based on our regular economic and monetary analyses, we decided to lower the interest rate on the main refinancing operations of the Eurosystem by 25 basis points to 0.25% and the rate on the marginal lending facility by 25 basis points to 0.75%. The rate on the deposit facility will remain unchanged at 0.00%. These decisions are in line with our forward guidance of July 2013, given the latest indications of further diminishing underlying price pressures in the euro area over the medium term, starting from currently low annual inflation rates of below 1%. In keeping with this picture, monetary and, in particular, credit dynamics remain subdued.”

EUR/USD Technical Levels

The fall from the 1.35 front after the ECB announcement to cut interest rates to 0.25% vs. previous 0.5% sent the pair to 1.3295 to almost 2-month lows. Offered at 1.3428, the pair oscillates between the supports aligned at 1.34 (August 26th highs), 1.33 (August 20th lows) followed by 1.3226 (September 4th highs) and the resistances set at 1.3476 (October 17th lows), 1.35 (October 2nd lows) followed by 1.3569 (September 30th highs). Staying around 7-week lows, the pair attempts to erase partial losses that add up to 0.56% in the afternoon of the American trading session.
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