Market was all about the ECB this Thursday, as the Central Bank surprised the markets by announcing it may add additional stimulus in December, either by expanding its assets purchases, or lowering the deposit rate further below zero, something that officials even discussed this month.
As expected, Draghi did actually little, but talked enough to downgrade the common currency, which fell almost 250 pips against its American rival, with the pair ending the day barely above the 1.1100 level, and poised to extend its decline.
The EUR/USD pair consolidates near the mentioned low, with no signs of changing bias any time soon.
Nevertheless, the pair has reached a major long term support area, and given that the pair lost over 200 pips pretty much straight, it may attempt an upward corrective movement before resuming its decline.
In short term, the 1 hour chart shows that the technical indicators have lost their bearish strength, but hold in extreme oversold levels, while in the 4 hours chart, the Momentum indicator maintains a sharp bearish slope near oversold territory and the RSI indicator stands at 19.
The next strong support comes at 1.1080, a long term ascendant trend line coming from 1.0591, April monthly low, which if broken, should lead to a test of the 1.1000 critical figure in the near term.