EUR/USD Consolidation Continues

As it could have been expected, yesterday’s Mario Draghi press-conference had quite the effect on EUR/USD, provoking a whipsaw when the pair fell, bounced off the support at 1.0820 and then climbed to reach the resistance at 1.1210, which proved too strong to break above. At this point I think there are two possible scenarios. The first one is that the pair will continue falling towards the support at 1.1040, and if it breaks below that level it will likely continue towards 1.0820 again. The second one is that it will test the resistance at 1.1210, and a breakout above that resistance will lead to a further move to the upside towards 1.1300, possibly even 1.1400.