In the last two trading days the main currency pair lost almost 3% of weight, so it is no longer a technical correction and it is gaining momentum.
The euro weakened considerably. Yesterday the decrease in the main currency pair was definitely a technical correction, but the sale this morning is worrying.
This morning the sale was increased by the speech of the representative of the European Central Bank, Mr. Ker. He noted that the ECB may increase the volume of the QE program before the summer "due to seasonal factors." Now the regulator is spending a fixed sum to buy back bonds - 60 billion euro per month. After the comments of Mr. Ker there is an impression that the ECB can increase efforts in this direction.
The reaction in the main currency was instantaneous. Even the theoretical extension of the QE program for the euro is a strong factor of pressure. Sales on a similar emotional basis can lead the euro/dollar to 1.1050 in the near future.
It turns out that the previous growth in the euro/dollar was mostly "empty" and not well founded. I have already said that the Euro becomes more expensive "by contradiction": not because it is strong, but because the dollar was weak.
RoboForex Analytical Department