EURUSD dips toward parity on the initial reaction

The EURUSD has moved back down toward - and now below - parity after the ECB rate decision. . In addition to the parity level being a natural support level, it is also home to about $2.4 billion of option expiry's today.

On a move lower with more momentum, watch the 0.9951 level. Recall that was a swing low going back to July. In the month of September the price tried to stall against that level only to break below on its way to the cycle low at 0.9535 reached on September 28.