The euro weakened against the dollar on Thursday after the European Central Bank moved to loosen monetary policy with rate cuts and stimulus programs, while an upbeat U.S. service-sector report added to the greenback’s gains. The European Central Bank earlier trimmed its benchmark interest rate to a record-low 0.05% from 0.15%, surprising many market analysts who had expected no change. The euro extended losses after ECB President Mario Draghi said the bank will begin an asset-backed securities purchasing program to shore up the recovery and steer the continent away from deflationary decline.Draghi did not say how much debt the ECB planned to purchase, as further details will emerge in October.
Intraday bias remains on the downside as 21 and 55 EMA trend indicators are crossed downward signalling a sell trend is established on the 1 hour, 4 hours, Daily, and Weekly time-frame. SSRC, Stochastic, RSI and MACD Oscillator indicators are showing bearish momentum is still intact. I’m still expecting a further decline of 60 to 100 pips in the coming days.
An important fundamental release to monitored closely tomorrow is the USD Non Farm Pay Roll Employment Change and Unemployment Rate.