Forex: EUR/USD plunges as ECB's Draghi speaks

FXstreet.com (Barcelona) - The rebound from yesterday's fall to 1.2937 low extended to 1.2990 seen ahead of the Europe. As the session opens, the EUR/USD is plunging strongly past yesterday's low as it already reached 1.2928.

The fall was triggered as the ECB's President Mario Draghi speaks to the European Parliament. Earlier, Spain's Guindos said that the Eurogroup meeting praised the government's recently announced measures, but didn't discuss further adjustments.

The trade deficit in France widened in August, from €-4.1B to €-5.3B, with a higher rise of imports (€40.89B to €43.45B) than the rise of exports (€36.83B to €38.17B). The budget deficit widened from €-85.5B to €-97.7B.

Despite yesterday's softening, Commerzbank analysts are unable to rule out a re-challenge of the 1.3173/77 band (recent high and the Fibonacci retracement/78.6% retracement of the move seen this year), but favor failure there. “Immediate support is offered by the 6 week uptrend at 1.2905, this guards the 2 month uptrend and 200 day ma at 1.2824/1.2738 – risk has shifted to the topside very near term however we expect it to remain fairly tepid”, wrote analyst Karen Jones.

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