if you ask about fundamental, this is bad. this is money printing (QE). i don't know why EURUSD rally base on this news, maybe it's moved by sentiment, not fundamentally. it gives bank relief on their iliquidity problem & also help to push down (some) PIIGS bond yields.
EURO-DOLLAR: Back above $1.3100, currently around $1.3110, as rate
recovers off its sharp corrective pullback lows at $1.30724. Markets had
been seen well positioned long euro-dollar into the ECB LTRO 3-year
offering take up results (coming in on the high side with initial react
seen positive for risk), with the profit take selling off react highs of
$1.3199 seen hitting a thin Christmas market. Market will now await New
York's reaction to the ECB action.
You guys are way too paranoid. The Euro has fallen 1200 pips in a couple of months. Everybody is wondering if we are at the bottom or if it will take a few more legs down. Bears don't want to sell because it is too dangerous, so a few hopeful bulls show up. However, at the first sign of weakness the bears jump back in and the bulls jump back out.
This means that price ranges with a slight upward bias. It is the most common of all technical patterns, the flag.
During the flag, the corrective portion of the trend movement, price is "spiky" and has a tendency to go nowhere very fast. This is partly because the market has little confidence in the direction of the new upward trend, and partly because there are liquidity holes.
And of course this is December so any tendency is amplified because of low market liquidity.