What happened yesterday no one expected. It isn’t about decreases, because as I said in weekly updates bearish scenario is on for few weeks now. However the size of depreciation surprised everyone. DAX -3.58%, many support fell like there were just matches on the way of angry rhino.
Draghi lowered deposit rates as expected however he almost didn’t change QE program, just extended it by another 7 months, that’s all. Markets were expecting huge expanding of the program. There is no reason to pretend that big moves on EURUSD and DAX were just a fault of ECB. Central bank was just a excuse to speculate by big players. We could expect corrections what I pointed in weekly update and Tuesday’s analysis of EURUSD.
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Going back to weekly update, I said that there are two scenarios possible right now and currently we are in one of them. Either market just started wave C what would mean we have to wait for new yearly low (probably 8,800 pts area) and then back to gains, or now we see correction which is wave 2 of new bullish trend. In this case there will be no low and after finish of correction new dynamic bullish wave will show up. Decreases can reach to fibo 61.8% retracement, which is currently at 10,100 pts level or to fibo 78.6% – 9,750 pts. On DAX 30 the closest strong support is at 10,500-10,600 pts level and it is October’s bullish gap. This support can be a target for bears today.
