EUR/USD technical analysis
Channel: DigitalLookChannel
Date: 2014-06-06

Traders have been accustomed to seeing strong price swings on the EUR/USD every time there is an ECB monetary policy meeting. The interesting thing is that yesterday we saw a bit of everything.

Following the initial rate cut decision, there was a sudden drop that eventually set a low at 1.3501 while everyone was expecting a rebound.

Later in the day, the euro began to recover and closed at an intraday high near 1.3670, exactly at a primary resistance level. All this happened in just one day.

Yesterday's bullish candlestick is a very strong signal, which anticipates a bullish continuation under normal conditions. However, caution is advised because the currency pair is still in a reaction phase.