The ECB said it would lower deposit rates to minus 0.4% from minus 0.3% and reduced its main refinancing rate to zero from 0.05%. Moreover, the central bank said it would include investment-grade corporate bonds in its bond-buying program, along with increasing the overall pace of the quantitative easing to €80 billion, or $88.6 billion, a month from €60 billion.
“Turning to the six month continuation chart, we see several bullish signs for the Euro. Current trading is pushing up against the 1.1500 resistance level last tested in October. The 20 day Simple Moving Average (SMA) is providing support and the Euro contract is trading above both the 20 and 50 day SMAs. 14 day Relative Strength Index (RSI) is approaching overbought at 70.93,” adds OptionsExpress.
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