Speculation that the European Central Bank will provide liquidity to Cyprus has prompted currency trader to buy the EUR/USD pair.
The pair has recently been affected by US dollar strong rally and Euro Zone financial crisis woes.
The Euro currency has swung into a downtrend since the 1 of Feb. Perhaps, is still far from bottoming. A support level around 1.27 shall help regain some temporal strength till The Euro Zone announces some positive statement.
It is no time to buy or sell the EUR/USD. While the currency has room to move downward, volatility could increase at this level due to current uncertainty.
Savvy investor would remain in the sideline waiting for a confirmation to buy. The pair is cheap again and have the probability to return high profits.
The weekly chart is forming today a Doji pattern which could signal that seller are no so keen and are losing conviction in the downtrend.