The ECB Effect

So the ECB posted its rate announcement today and it was...to say the least; BORING. They didn't change anything actually but there was a reaction. Lets go over how the most relevant currency pairs reacted. Highlighted in blue is a two-day view of the pairs price along with its High and Low between the two days.

EURUSD

Has been falling steadily for over 30 days straight pretty much but yesterday it was pretty much congested and stuck in a range just before the end of the day when it consolidated; which is expected before news. What Most people didn't expect and what I predicted was the bounce in this pair. Contrary to the downtrend the market turned to the upside today. I know that banks and institutions use news for reasons to instigate sentiment and direction. This is what they did today. They sent the price all the way up to 1.26908 approx. 108 pips from yesterday's low of 1.25828. If we get a close above today's high/resistance(1.26650); we should see this pair turn to the upside for an extended period. The 60min chart below shows us what I'm talking about. Observe the RSI above 50 today... 

EURJPY

This pair has been on a downtrend as well but there is no rest for the weary when it comes to the Yen. Traders have been relentless in their pursuit to acquire yen for exchange for European Currencies. Monetary policies have created this atmosphere. Yesterdays high was met by a shooting start at 138.799. Towards the end of the day yesterday we saw our support of 138.00 broken, the pair slid into the London Session saw a new low of 136.947 and the price became congested around the time of the ECB Rate News; Leading me to believe the bank traders were simply trying to confuse the retail markets as well as get customer orders in before the price got away from them. Below on a 60min chart we can observe this behavior. 

EURGBP

So yesterday this pair fell but managed to pick itself up during the Asian Session and end the day just barely higher than it opened. Today was a completely different story. I wasn't sure when but I know there would be a bounce in this pair and boy oh boy did it bounce today. I knew this because of the consolidation without range I noticed on the 60min chart. Below on that same chart we can see the pair test a low of .77660 yesterday AND the day before that without breaking down. From there the pair used the new to bolster itself up to a high of .78497; passed the .78277 intra-week resistance. I see the tide turning for this pair and more positive days in its future. Below we can observe the RSI moving from below 50 to overbought in just 48 hours. Interesting. 

EURAUD

The Australian traders are giving the markets hell right now (lol). If you don't know anything about the Aussie traders and pairs I'll give you a bit of advice: Be early, because they move fast and often. This pair took a nice ladder up over the past few weeks and ended up going haywire in a realm of congestion just as it met new highs. Yesterday the pair failed to make a higher high (1.45609) and ended up falling dramatically. It ended the yesterday near its opening price and  roamed into today falling below its medium term support (1.44500) which looks like it could now serve a resistance. Today it has successfully made a lower low at 1.43447 and has began to retrace towards the aforementioned resistance test. Below we can observe the pair's RSI just above 50 but that seems to be the signal for the bears to come in and take control.