Last week, the ECB supported the common European currency by saying that the bankers will do their best to save the eurozone and its currency from collapsing. The Euro instantly responded with a rally against the US Dollar.
However, according to Andrei Goylov, chief analysts at Roboforex, the bullish potential is exhausted and the market wants the ECB to introduce an efficient plan of supporting the common currency.
At this point, it turns out that the ECB has no recipe for resolving the eurozone crisis. This is good reason for the bears to start speculating on the instability of the Euro.
The common currency will most likely remain under pressure till Thursday when the ECB is to hold another meeting. Traders and investors will be looking forward to the results of the meeting. The ECB’s future money-and-credit policy will be the focus.
The ECB well may expand the purchases of the bonds emitted by risky eurozone members. Analysts say this will be rather costly and is unlikely to pay off in the long run.
According to the DWFA Department of , EURUSD is likely to go further down. However, the bearish move won’t be prolonged. Soon we may see a trend reversal.
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The current state of affairs looks as follows:
