EUR/BRL should go down to its support level this month

The exchange rate slightly steadies this Monday, but bears are widely expected to come out triumphant in the coming sessions. The pair should go down to its support level this month as the Brazilian real makes an astonishing come back. The news about the European Central Bank’s decision to expand its stimulus program even more than expected failed to support the euro last week. The ECB opted to widen its stimulus program to support the badly injured economies in the region which is currently facing its worst recession since the Second World War. The decision of the ECB also supported the risk sentiment in the market which ultimately boosted the Brazilian real as well. According to reports, the central bank ramped up its emergency bond-buying scheme by about €600 billion to €1.35 trillion. Aside from that, ECB head Christine Lagarde is set to testify later today, to update the bloc about the stimulus programs which delighted bulls.