Following the 7:45 ET interest rate announcement traders anticipated that Draghi would announce a full-blown bond repurchase program at the 8:30 ET press conference that followed.  Rather Draghi used a lot if coulds, shoulds, and mays to describe the ECB's future actions.  Draghi stated that the ECB may soon undertake market operations on government bond markets and consider other unconventional measure.  Once again the markets received a handful of words with little to no concrete action.

During Draghi's press conference the EURUSD moved within a 200 pip range.  The pair moved as high as 1.24 before diving lower after market expectations where disappointed.  Resistance for the pair is now at 1.2220 and support is at 1.2110.  A move down to 1.2110 would place the pair back to the level it was at before last Friday's short squeeze higher.  NFP  Friday could also have a strong impact on this pair.  A better than expected number could push the cross lower towards the year to date lows at 1.2040 due to diminished expectations for further QE.  A week number could send the EURUSD back towards the 1.2330 level.  Time can only tell.

Sup     1.2110

Res     1.2220

Keane Insight:  All eyes on NFP.  Broader range has Support at 1.2330 and Res at 1.2040


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