It appeared to many traders that the 25 BP rate reduction was already priced into the EURUSD heading into Thursday's announcement by the ECB.  Yet the pair still fell aggressively after the news was released.  The sharp fall could have been triggered by many factors.  Ranging from the reduction of the deposit rate to 0%,  BOE additional QE, or the Peoples Bank of China interest rate reduction.  Most likely the combination of all of the data points lead to a level of uncertainty that pushed some player into the safe haven of the dollar.

Friday should be another interesting day of trading.  NFP is due at 8:30 ET.  A strong number similar to the ADP report released Thursday would further diminish the expectations of further QE.  Heading into Asian and European trading the EURUSD is sitting below key support at 1.2405.  This level should act as a pivot prior to NFP.  If the cross remains below this level we could drift lower during the evening.  If the pair can move back above 1.2505 we could see a bit of profit taking before the release.  Focusing on a larger time frame support begins at 1.2285 and resistance is strong at past support at 1.2520.

Sup    1.2285

Res    1.1.2520                       Pivot      1.2405