All this EURUSD action toward 1.39 in past months was just Euro showing fake mussels till ECB been faced by the truth that the financial crisis in Europe still strongly present everywhere. According to Daghri speech yesterday EURUSD might go down toward retesting the historical level 1.18. On the other hand Draghi might be preparing the market for a new speech soon about achieved reforms or he might mentioned it yesterday By saying “We are accountable to the European people for delivering price stability, which today means lifting inflation from its excessively low level. And we will do exactly that,” Mr Draghi said. 

Then a part of his conclusion yesterday was “This combination of policies is complex, but it is not complicated. Each of the steps involved is well understood. The issue now is not diagnosis, it is delivery. It is commitment. And it is timing.” Which mean before EURUSD go up again the ECB will wait the right time.

On chart EURUSD yesterday did fall from 1.27 toward 1.26 and currently trying to push again above 1.27 level, showing that the words of Draghi yesterday first showed a weak economy yet also he did declare using his special touch on the market that in the right time the ECB might declare achievements which might give strength for the EURUSD.

In other words the EURUSD is currently oversold and now trading between 1.28 and 1.20 trying to push toward 1.30 slowly and lets don’t forget that at 1.18 in 2010, All the Euro zone project was very close to collapse because of Euro aggressive weakness and it’s when voices pushed from Europe mentioning that Euro must be strong to survive and in 2012 EURUSD didn’t dare to fall under 1.20 to retest 1.18

In the next weeks to come, the correction might happen at any moment taking the EURUSD toward 1.30 but we need to be well prepared for when the ECB will see it’s the right time to switch the direction of EURUSD from weakness to strength and on which level 1.25 or 1.23 or 1.20

Provided By Fxhighway