Judging by the 200 pip tumble since the ECB’s meeting on Thursday, the EUR/USD was at 1.1614 moments ago, the unexpectedly dovish taper clearly surprised many, and attention has fallen on the open-ended nature of the operation as the focus of that surprise. And speaking of said “open-ended” taper, overnight Boersen-Zeitung reported that Bundesbank President Jens Weidmann, Executive Board member Sabine Lautenschlaeger, and Dutch central bank Governor Klaas Knot all opposed Draghi’s decision. even as other policy makers were critical, if not opposed, including Benoit Coeure. Of course, in the end, whatever Draghi wants, Draghi gets and the result if a slap in the face for all Euro bulls.

However, if Bloomberg’s macro commentator and resident contrarian, Marc Cudmore, is correct, the Euro’s descent has only just begun and the pain for said bulls is only just starting, because as he writes in his overnight Macro View note “Structural long-term arguments for being bullish EUR/USD, while entirely logical, are largely irrelevant right now. Investors are enthusiastically adopting the concept of a correction in the pair and won’t be easily dissuaded” especially since it now appears that no matter who the next Fed chair is, more rate hikes are coming, and a greater interest rate spread differential between the US and Europe is just a matter of time.  And then there is the threat of if not tax reform, then tax cuts, and while “the ultimate economic impact of any watered-down agreement may be minimal, but that’s a trading theme for another month. The positive sentiment of domestic policy potentially getting passed under the Trump administration is what markets care about now.”

Oh, and there is the whole Catalan thing, which traders are finally paying attention to.

That, and other reasons, is why when looking at the chart below, the 200 pip move in the past 24 hours may be just the start of a broad correction that takes the EUR/USD back to 1.10 if not lower.