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Big surprise: the ECB cut the rates. Only few  anticipated this. The ECB cut the main lending rate to 0.05%,  deposit rate at 0.20% and the refi rate to 0.30% – This is huge.

EUR/USD is at 1.3077 1.3055. This is the lowest level in more than a year.

Update:  a EUR/USD guide  next levels after the ECB cut

Update:  Draghi announces sizable ABS – EUR/USD dips below 1.30

While there was no full consensus, the  European Central Bank was expected to leave the main lending rate at 0.15% and the deposit rate at -0.10%. The focus shifts to president Mario Draghi’s press conference, in which he may announce more measures, perhaps QE. A report that hit the wires before the publication talked about QE worth €500 billion that will be  announced today. We will soon learn.

EUR/USD traded around 1.3125 prior to the publication, having being hit by the aforementioned report.

Here is the chart:

EURUSD Daily chart September 4 2014 technical analysis for currency trading euro dollar

Stay tuned for a live blog of the  press conference.

Here is the preview:  4 options – lower forecasts but probably no action