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EUR/USD Takes a Dive after a Dovish ECB

Mario Draghi is going to continue quantitative easing operations in today's ECB monetary policy statement. The euro took a dive and continues to be bearish in the short to medium-term. 

EUR/USD 4H Chart 9/3


(click to enlarge)

It appears that the next stop will be the 1.1017 support pivot from August. The 4H chart shows a market that is turning bearish after a bullish run in August. Perhaps price action is turning back to its mode seen in the weekly chart - bearish.

EUR/USD Weekly Chart 9/3
(click to enlarge)

The weekly chart shows that EUR/USD started to be bearish in early summer of 2014. In 2015, we have seen the pair mostly consolidate. The latest price action was a strong push that was rejected at 1.15. Is this a sign that bears are still in control? Maybe, but this is a medium to long-term outlook. In the short-term, there is still upside risk to 1.15, especially if price stays above 1.10 and the rising trendline shown in the weekly chart. 

For trading consideration however we do need to raise our attention because if EUR/USD is going to fall back into its bearish mode, it can happen fast. Yes, we need to be patient yet be ready to pounce on a bearish continuation scenario, at least towards the 1.05 area.