EUR/USD range-bound after disappointing ECB

ECB's interest rate decision disappointed the market expectations. Most importantly, the absence of strong forward guidance in terms of further cuts to depo rate was disappointing.

This signals from the central bank, along with Fed December hike, as broadlyexpected by markets, the EUR/USD is likely to trade sideways in near term.

"Over the medium term however, we continue to believe that a weaker EUR will be necessary to fulfil the ECB's mandate in a timely manner and continue to forecast 0.95 by year-end 2016", says Barclays in a research note. 

EUR/USD short recommendation are closed and it is preferrable to sit on the sidelines for now, although a further positioning squeeze up to 1.12 would likely lead to reconsider the position.