Keeping a closed eye on the pair, it is clear that the pair has broken the long bullish trend support after Draghi lowered benchmark interest rates to negative levels. Later the pair found support at the 1.3500 level and retraced back to the 38% Fibonacci to fail to break above that level. We could see a formation of a BUTTERFLY pattern right before the bearish trend. It is also trading below its 200/100 DMAs confirming a bearish momentum. Fundamentals indicate that the ECB will start LTRO in the near time using maximum purchases of One trillion Euros. The ECB has to fuel inflation and depreciate the EURO in an attempt to boost the economy and exist the threat of deflation. We should keep an eye on consumer prices figures in the coming weeks. Rising euro will cause export demand to fall and will put the EURO area in risk of deflation. LTRO might cause a hike in EURO bond yields which might increase borrowing costs on weak Euro members as Greece. I suggest waiting for another bullish move and watch if it will break the resistance area, if not then the bear trend is in power. A closing candle below the 1.3500 level also indicates a true bearish trend.