The concern of the market about potential consequences of the “fiscal cliff” in the USA triggered an abrupt demand for risky assets, among which there’s EURO as well. On the recent press conference of the committee on the monetary policy of the ECB, the head of the ECB Mario Draghi claimed that the EU would be weak next year also. He emphasized that the beginning of the recovery process is assumed to start only in the second half of the coming year. The ECB continues debates about reducing of the rate in the near future. Meanwhile the European authorities left the rate on the previous unprecedentedly low level of -0.75%. Though they left an opportunity of themselves to support the economy by modifying the number in the future. The EU economy for the second time in the last four years plunged into recession. That’s the result of the European struggle against the sovereign debt crisis, that outbroke in 2009 and hasn’t softened until today. The majority of the EU states aiming at the reduction of the budget deficit haven’t achieved any results in fighting the debt crisis still. Their economy continues to lack the pace of development.
The Euro continues to depreciate. Today the breach of the support is anticipated. Afterwards in addition the currency pair is expected to consolidate and to continue going down. We presume that the level of 1.3177 will be tested and afterwards we expect the continuation of the bearish trend.
The pair is in the process of depreciation within the framework of correction. Today we anticipate the renewal of the current minimums and consolidation. Further on the decline to 1.6160 is predicted where this level will be tested. Afterward the most probable scenario is the continuation of the previous trend, i.e. depreciation.