Why The ECB Press Conference Plummeted EUR/USD

FX_IDC:EURUSD   Euro / U.S. Dollar
The European Central Bank had a conference where Mario Draghi, President of ECB, presented the ECB. One of his alarming statements were that the ECB has decided to cut their monthly asset purchases in half, from 60bn Euros to 30bn Euros, starting of January. With economic intuition, this enlightens Europe's inflation struggles it has had over the past few quarters. As well as Draghi's actions on APP, He has also insisted that quantitative easing is needed for ECB to reach their inflation rate target. Quantitative easing tends to looked as panic and a last resort for economies when trying to boost inflation rate; this can be shown from the massive decrease in value of the EUR/USD after this press conference where EUR/USD major support has been broken @ 1.70739. Lastly, U.S.A's GDP results are pending tomorrow and it is foretasted to be less that last month's 3.1% GDP, this month's forecast is at 2.5%.


Do you expect a rally back to previous support or a continuation of the short?
forexwithfred ForKrishanEx
@ForKrishanEx, Welll, depending on the result of USA's GDP rate today, I expect it to continue the short