The headline read “ECB officials said to see markets underestimating rate-cut odds”. This headline coincided with the opening of the US stock market. Stocks already moving lower into the open and continued moving lower after the open. This was a double whammy for the EUR/USD as the ECB comments pushed the Euro lower and the move lower in stocks helped push the US Dollar higher (EUR/USD lower). EUR/USD quickly moved lower on the ECB comments. For the moment, the pair is holding recent support at 1.2050 as the market begins to price in a rate cut. That level also confluences with the 38.2% Fibonacci retracement level ... (full story)