Lets look at the 3 main pairs at the moment and see what they are up to.
First up is the EURUSD. The pair met some bull at the 1.3476 level and has since rebounded up to the 1.36 price level after Draghi’s comments. The price is now meeting a mash of moving averages and might spend some time unravelling from that. In my opinion the pair is still contained within the down sloping channel and the immediate price movement can be seen as just a reaction which is currently contributing to a lot of price instability. There is still a chance though that the bulls might bring this pair up to the supply area around 1.37, where the bears would come in and try to take over. Take note of those sell zones and plan your trades around those zones.
Now, lets look at the GBPUSD. The last two days candle closed with 2 pin bars which gives us an indication that this pair might rebound up in a matter of time. At the moment, the price of pound dollar is around 1.634. A push northwards may bring this pair into the coil of moving averages at around 1.642. There might be bears camping there to bring this pair lower from there. You might want to plan a short trade around that area and wait for a bearish signal before initiating a trade.
Next up is the dollar yen. Emerging market woes and risk aversion have brought this pair to a low of 100.758. Yesterday, we saw a rejection from that level again and has ignited a further push northwards today with the possible upside of firts the 38.2 fib level at 102.538 and next the 50% fib level at 103.088. Look out for bearish signals when price hits those levels as I feel that this bearish move might not end so soon.
To your trading victory!