We don’t expect today’s press conference with the European Central Bank (ECB) to have a material impact on the EUR/USD currency pair. While the meeting does suggest bearishness due to a lower 2013 GDP target and downside on CPI outlook, ECB Chair Mario Draghi still has plenty of tricks up his sleeve that can support the Euro. Though the EUR/USD recently broke its TAIL line of support at $1.30, it quickly climbed back to its TREND line of resistance at $1.31. If anything is going to affect the Euro in the coming weeks, it will be the uncertainty over Italy’s next government. We play the Euro through the CurrencyShares Euro Trust ETF (FXE).
