The euro is close to its new annual highs following the status quo of the ECB, which has kept its minimum rate to 0.75% for the sixth consecutive month, and the reassuring words of Mario Draghi about the European economy.

Unlike last month, the decision of the ECB to keep its minimum rate at its record low is unanimous, discredits the hypothesis of a future monetary easing in the short term. On the other hand, Mario Draghi also surprised investors in finding, during the traditional monthly press conference, a stabilization of the macroeconomy in Europe, indicating that he expected a gradual recovery in 2013.

Earlier in the day, the success of the Spanish and Italian auctions had allowed the Euro to begin its ascent, in favor of an easing of the bond markets. Spain has notably raised 5.82 billion euros in medium and long term, a figure greater than originally anticipated.

Technically, the Euro has rebounded on an intersection between the support 1.3024 and a trendline above 1.3250 for the first time for one year. This observation reinforces our bullish scenario and we now expect a continuation of this movement beyond our USD 1.3345 resistance to USD 1.3534.