Expectations were high heading into today’s European Central Bank meeting, but “Super Mario” Draghi was up to the task.

As we all know by now, the central bank announced a Quantitative Easing program to the tune of €60b per month, beating the whisper expectations of 50B/month, and most importantly, committed to buying assets for at least 18 months.

The market reaction to this bolder-than-anticipated announcement has been mixed: European equities spiked, then dropped; periphery bond yields fell to new record lows; gold rallied back to $1300; and the euro generally dropped. As of writing, EUR/USD is trading at 1.1480, down over 100 pips from pre-ECB levels, while EUR/GBP is pressing the bottom of its 18-month bearish channel in the upper .7500s and EUR/Swiss franc dropped back below the key parity (1.00) level to trade at .9850.

Technical View: EUR/USD

While the situation is still fluid – indeed Draghi is still speaking as we go to press – the big QE announcement should increase selling pressure on EUR/USD. The pair is just barely holding above last week’s 11-year low at 1.1460, but if that floor gives way, there is room down to the next level of minor support at 1.1375 or even the 61.8% Fibonacci retracement of the EUR/USD’s entire 2000-2008 rally around 1.1200.

Source: FOREX.com

That said, there are some potentially bullish signs in play as well. The RSI indicator on the 1hr chart is oversold, hinting at a potential near-term bounce, while longer-term positioning is at a historically bearish extreme, suggesting that everyone who intends to sell the euro may have already done so. In our view, another short-term bout of euro weakness is likely if rates break 1.1460 support, but bears should be extremely cautious as EUR/USD is ripe for vicious short squeeze.