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Forex: EUR/USD in session lows ahead of EMU GDP

The single currency is dipping to the area of 1.3040/45 on Wednesday, waiting for the final figures of the GDP from the euro zone during the last three quarters of 2012. The figures would likely show that the euro bloc remains in recession, with the economic activity shrinking 0.6% inter-quarter and 0.9% on a yearly basis.

Against the backdrop of tomorrow’s ECB gathering, Chief Analyst at Danske Bank A.von Mehren commented, “With Draghi likely to signal that a rate cut would have been discussed and US employers likely continuing to add jobs at a decent pace, the near-term risks for EUR/USD are tilted to the downside”.

At the moment, the pair is losing 0.08% at 1.3041 with the immediate support at 1.3010 (low Mar.5) ahead of 1.2982 (low Mar.4) and then 1.2966 (2013 low Mar.1).
On the upside, a breakout of 1.3075 (high Mar.5) would expose 1.3085 (MA10d) and then 1.3101 (high Mar.1).

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