EUR/USD extended the falls it encountered during the ECB press conference, where Draghi hinted of greater demand for a rate cut within the central bank, and also lowered the growth forecasts.
The move of over 70 pips might encounter support.
Draghi said that there was a wide discussion about the rates this time. This is not the usual unanimous vote, or large majority. In addition, he presented lower growth forecasts for 2012-2014 and talked about lower inflation.
The pair dropped from 1.3070 to 1.3030 during the press conference, and extended its drops after it ended, down to 1.2987 at the time of writing. If the break is confirmed, the next line of support is at 1.2960, which is very close.
For more, see the euro to dollar forecast.
After enjoying nice rises throughout the week, EUR/USD was unable to approach the all-important 1.3170 line which capped it earlier in the year. It seemed to have run out of steam as it made a higher low, and not for the first time.
This is a busy week, as always at the beginning of a new month. The last major event is the king of forex: non-farm payrolls.
Here is how to trade the Non-Farm Payrolls with EUR/USD.
