The Euro seems to be indecisive against most of the other market currencies. One of the possible reasons is the approaching European Central Bank (ECB) rate announcement today at 12:45 GMT. The forecast about the ECB action is that the bank is going to leave the rate unmodified. So the essential event might come from the President Draghi press conference. Also the market is focused on the condition of high unemployment rate and about France downgrading. However the rumors about the latter piece on news were refuted officially by the French Ministry. In Britain there are BoE announcements on the assets’ purchase and lending rate. Both figures are expected to remain unchanged. Thus any deviation from the assumed scenario will move the market wildly in an uncertain direction. As for Japan the market still relies on its conviction that the new Japanese government will pursue a weaker Yen. The Bank of Japan recently has been consistently weakening its currency to relief its exports. So other currencies are acting accordingly against the Yen. Regarding the USA Moody’s stated that the risk of default of the US treasury is low. Nevertheless, it mentioned that the recent budget deal is positive for trading only marginally. The agency also warned that the debt reduction is needed in order to support US credit ratings.
The pair is trading in the narrow range. Technical picture suggests the bearish trend in the near term. But anyway’ it’s important to emphasize that there’s a significant support forming on the current minimum levels. And the renewal of minimums is not likely. But as an alternative of the continuation of the downtrend, we can mention the level of 1.2990. In case of such scenario the market will have to form another support. Structurally it doesn’t disrupt the potential for further growth development. The ascending goal remains at 1.3160.
The British Pound trading against the US Dollar recently has renewed the minimums. But the structure of support is not yet formed. Therefore we expect another renewal of minimums for the pair. Afterwards the assumed scenario is the forming of another support level for subsequent growth wave.