A waterfall-like pattern was seen on the EUR/USD as it dropped three big figures in just over 24 hours after the ECB presser, where Mario Draghi hinted at the expansion of the QE program in December, which smacked the euro. The bearish trend on the euro has resumed and the pair might drop further, however, the focus will remain on Wednesday's FOMC meeting.
The euro has been in trouble since the presser and dropped to fresh ten week lows, slightly above the $1.10 mark. Most of market participants turned bearish again, as the pair broke some key technical supports and the ECB clearly stated it is ready to act and loosen monetary policy further.
Moreover, investors will eye the FOMC meeting, which concludes on Wednesday. Market participants don't expect the Fed to raise rates, however, the jargon of the statement will be eyed. If it reinforces the view of the governors that they are ready to hike in December, the greenback should appreciate further.
On the other hand, dovishness from the statement might stop the latest drop of the EUR/USD pair. Volatility is expected to be higher during the week.
