It’s not solely a euro fall story anymore. Long hours after Mario Draghi announced a QE program potentially worth over 1 trillion euros, the action in the markets continues.
EUR/USD fell below the November 2003 low of 1.1373 and didn’t stop. The fresh low at the time of writing is 1.1314.
Here is why the QE program is really big and why EUR/USD has more room to fall. The pair is reaching some bearish year end estimations made by various banks.
GBP/USD follows suit with a fall below the very round line of 1.50 and trades at 1.4972 at the time of writing. Will the BOE delay rate hikes for a very long time? The recent MPC meeting minutes showed a unanimous vote against rate hikes for a change/
More: GBP/USD set to fall below 1.50 – Elliott Wave Analysis
AUD/USD is also on the verge of losing the very round 0.80 line and trades just a few pips above this line. So far the pair has been resilient, but this may not last too long.
More:Â AUD/USD falls under 0.80 as central banks race to the bottom
More:Â AUD/USD: Trading the HSBC Chinese Flash Manufacturing PMI.
Here is the monthly chart of EUR/USD, showing the levels from early in the previous decade. The next real support for the pair is still far.
