The Euro took a dive as the dollar strengthened on the back of growing speculation the Fed will leave rates on hold at 2.25% combined with declining business confidence in Germany and France with the IFO Business Index . The Euro 's Current Account for February saw a surplus of $5bn compared to a deficit of -$19.1bn in January. Whilst this figure on face value is positive it could actually signal weakening demand throughout the Euro Zone leading to less imports rather than growing exports. The weakening Euro shows that there was growing feeling of caution among investors about buying the Euro as there is a growing sentiment that the Fed will stop cutting rates for a while after this month.
TECH VIEW
Euro is expected to trade in the range of 1.5630-1.5740.With good support seen at 1.5610 break of it would see the currency at 1.5590.Resistance seen at 1.5650.Momentum and Histograms also indicates the currency to be on a downtrend .Currency is expected to test the lower Bollinger bands for the day.
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