The EUR/USD pair have been receiving more attention than usual. There have been few more technical reviews and comments about the pair in the last week than in a whole year.
A few days ago most comments were about short selling the pair and the number of traders that were betting on the fall of the Euro. More recently technical analyst have updated their view of the currency pair and are suggesting that after a drop below 12200 the EUR/USD could rally towards 12500 plus over the next few weeks.
All the hysteria has come after the pair reached the lower points in two years and the ECB suggested that it will take bold action to save the Euro Zone.
Today the ECB (European central Bank) holds a meeting surrounded by speculation that it will take action to reduce Spain’s borrowing cost.There is also speculation the the ECB might restart its Securities Markets Programme, which allows the ECB to buy large quantities of government bonds from banks and other financial institutions on the open market.
The EUR/USD is now gaining 8 pip after plummeting earlier from $1.2306 to as low as $1.2217