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7 Feb 2013
Forex: EUR/USD collapses to 1.3450, 1-week lows
The EUR/USD has fallen around 100 pips since the Draghi's speech from 1.3570 to reach the lowest level since January 29 at 1.3450 where the pair has found some support. Currently the pair is trading at 1.3455, 0.50% below opening price action.
Bias is negative following a bearish press conference from Mario Draghi. The president expects the inflation to dip below the 2% in the medium term, keeping expectations around that level as well. He informed that weakness in the euro area would persist in the first part of the current year, allowing a recovery later. In the same tone, he warned that a high exchange rate would pose risks to inflation.
Next supports come at 1.3450, 1.3415 and 1.3390. On the bullish side, the pair needs to recovery the 1.3500 line to see next resistances at 1.3525 and 1.3550.
Bias is negative following a bearish press conference from Mario Draghi. The president expects the inflation to dip below the 2% in the medium term, keeping expectations around that level as well. He informed that weakness in the euro area would persist in the first part of the current year, allowing a recovery later. In the same tone, he warned that a high exchange rate would pose risks to inflation.
Next supports come at 1.3450, 1.3415 and 1.3390. On the bullish side, the pair needs to recovery the 1.3500 line to see next resistances at 1.3525 and 1.3550.