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7 Feb 2013
Forex: EUR/USD dips to 1.3480 on Draghi
The single currency reverted initial gains and dipped to critical support levels around 1.3480 on Thursday, after a dovish press conference by ECB’s Presiden M.Draghi is weighting on the cross.
Draghi also expects the inflation to dip below the 2% in the mediun 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.
At the moment the cross is down 0.24% at 1.3488 with next support at 1.3459 (low Feb.5) and then 1.3425 (MA21d).
On the flip side, resistance levels are located at 1.3598 (high Feb.5) and then 1.3659 (Upper Bollinger).
Draghi also expects the inflation to dip below the 2% in the mediun 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.
At the moment the cross is down 0.24% at 1.3488 with next support at 1.3459 (low Feb.5) and then 1.3425 (MA21d).
On the flip side, resistance levels are located at 1.3598 (high Feb.5) and then 1.3659 (Upper Bollinger).