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The ECB made available $530B in loans to EU banks today in order to provide liquidity to banks...known as LTRO 2. $498B in loans (LTRO 1) was made on December 21, 2011.
Effects of ECB LTRO 2 on EUFN and EUR/USD

The reaction, so far today, on the European Financials ETF (EUFN) has been negative, as shown on the Daily chart below. Price has been trading in a range just below major resistance, and is still subject to the bearish influences of the existing 50/200 sma moving averages Death Cross formation. Additionally, there are negative divergences in play on the MACD, Stochastics, and RSI.
Effects of ECB LTRO 2 on EUFN and EUR/USD

Similarly, the reaction, so far today, on the EUR/USD forex pair has been negative, as shown on the Daily chart below. Price has been trading in a range just below major resistance, and is still subject to the bearish influences of the existing 50/200 sma moving averages Death Cross formation. Additionally, there are negative divergences in play on the MACD, Stochastics, and RSI.
Effects of ECB LTRO 2 on EUFN and EUR/USD

Time will tell whether the European financials and the EUR/USD hold at current levels, or whether a pullback follows in these instruments, and, ultimately, in the European banks.

Read more http://www.strawberryblondesmarketsummary.com/2012/02/effects-of-ecb-ltro-2-on-eufn-and.html

                       

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