Technical Analysis EUR/USD for 11/3/15

The EUR/USD whipsawed following news that the ECB’s Draghi casts doubt on additional stimulus. Draghi said over the weekend that it is still an “open question” whether further stimulus is needed. This seems a more cautious tone than at the press conference, although comments from individual council members since the last meeting already indicated that not everyone is backing additional action at the moment.

The exchange rate tested the 10-day moving average near 1.1080, but was unable to gain traction generating an inside day on Monday which is a lower high and a lower low.  Support is seen near the October lows at 1.09.  Momentum remains negative with the MACD printing in the red with a downward sloping trajectory pointing to a lower exchange rate.