Three-candle reversal underway
The euro bulls wanted more from Draghi.
It’s been a one-way trade since the spike on the text and first comments from Draghi. Part of that is likely profit-taking after a five-day rally but the risks of a deeper correction, or a reversal are growing.
There is now a three-candle reversal on the daily chart that will be confirmed by a close below 1.2328.
This is a familiar theme for euro traders. There’s a build-up to the ECB, then Draghi does everything he can to dampen the enthusiasm.