A month ago I suggested Support Line 1 as the bottom of the present downtrend of the Euro
against the US Dollar
. Recently I changed that prediction ot Support Line 2. There was a hint of a stall, today, in the downward movement. However, the market factors are such that the down-plunge is unlikely to stall until after the ECB meeting on Thursday at the earliest. Since European inflation
is at an all time low, the American economy is showing robust growth and the Euro
Zone is stagnant, decisions of the ECB on Thursday are likely to accentuate the downward trend rather than the contrary. Therefore, the stall projected on the chart is unlikely to occur.