Is 1.3860 a finish for EUR/USD?

FXStreet (Moscow) - When a dust settled after a speedy rush on ECB outcome, EUR/USD finished at 1.3860, where it spent the whole Asian morning.

Too much happiness out of nothing

The market over-reacted to the recent ECB meeting, as there were both positive and negative comments. However, the market expected even more pessimism from Draghi, and rushed higher when didn’t get it. Thus, there is a potential of mild corrective move back when investors calm down, and realize that with 2014 CPI downgrade the ECB‘s easy stance will be prolonged, and even additional stimulus may be needed in the nearest quarters. Besides, geopolitical risks from Russia and Ukraine may pressure the recovering economy, limiting the growth speed. The understanding of such factors may push the pair back to 1.3760 support level, when 1.3817 is broken.

What are today’s key EUR/USD levels?

Today's central pivot point can be found at 1.3817, with support below at 1.3760, 1.3663 and 1.3606, with resistance above at 1.3914, 1.3971, and 1.4068. Hourly Moving Averages are bullish, with the 200SMA at 1.3741 and the daily 20EMA bullish at 1.3718. Hourly RSI is bearish at 82.