Sell on a level breakthrough of 1.1157 with 1.1067 target. Stop loss = 1.1220.
Reason for the trading strategy
The ECB did not disappoint market participants and lowered the key lending rate in the Eurozone from 0.05% to 0%, the key deposit rate - from -0.3% to -0.4%, and the margin lending rate - from 0.3% to 0 25% yesterday. In addition, the regulator has announced an expansion of the monthly asset purchases program by one third: from 60 billion to 80 billion euros starting form April. In June, a new series of 4 targeted long-term refinancing operations (TLTRO) will be launched, the terms of each one will be 4 years. As part of the TLTRO program, the Eurozone commercial banks will be able to borrow loans from the ECB at an interest rate of -0.4%. According to M.Draghi, the head of the ECB, the key interest rates in the Eurozone will remain very low even after the asset purchases program is completed.