Late night trade! I am placing a longer-term trade in the M6E.
Entry: Buy 1 @ 1.3180
Economic data for inflation has been below expectations leading one to assume that the ECB will implement an asset purchase program. This is probably the fundamental factor behind the downward move in the Euro. However, it is not likely that the ECB will go forward with an aggressive easement policy like the Fed and BOJ (Bank of Japan). The historic policy of the ECB foreshadows a much more conservative approach.
Other reasons:
Temporary factors that may have contributed to the decrease in inflation forecasts.
ECB is in the process of improving aggregate demand.
Mario Draghi's speech reiterated the issues in Europe.
Technicals:
The Euro may be overextended and prepared for an upward trend. Notice the break in the trend line and the double bottom.