Global macro overview for 08/12/2016:

The European Central Bank has decided to leave the key interest rate unchanged at 0.0%, which was in line with expectations. Together with the key interest rate, the deposit facility rate was left at -0.40%, the marginal lending facility was put on hold at 0.25% and the asset purchase target was left unchanged at €80 billion. Regarding the quantitative easing changes, the ECB said the QE will be kept at €80bn until April 2017, then it will continue at €60bn until the end of Dec 2017 or beyond if necessary. In conclusion, the QE program was extended just as anticipated, the bond-buying rate was lowered to €60bn.

Let's now take a look at the EUR/USD technical picture after the news release. The initial rally was quickly faded after the level of 1.0871 was hit and now the market got back to the trading range. Currently, the most important support is set at the level of 1.0687 and any violation of this level will likely result in further downslid towards the main support at the level of 1.0514.