Euro / US Dollar (EUR/USD) : 250 pips in two days
By Mathieu Burbau
The acceleration of profit taking was caused by the press conference of Mario Draghi when he stated that the decision of a new status quo was not unanimous and that the institution is now expecting a contraction of GDP in 2013.
In the aftermath, the German central bank lowered its forecast for the largest economy to 0.7% for 2012 against 1% before and only 0.4% for 2013 against 1.6% in the previous estimates, warning clearly that Germany could turn into recession.
Euro tumbles but remains solid, reinforced by a further decline in the U.S. unemployment rate at 7.7% in November, which temporarily hide the “fiscal cliff”.
Technically, the breakdown of 1.30 involves a return on the support situated at 1.287. This key level should contain a further decline in short-term and trigger speculative buy. A daily close below this level would involve a return to 1.2666.