Last week the Euro has reached a top at 1.3450, but it did not remain to long there because the US dollar started to recover. This week started with a consolidation around 1.3400. When the problems in Syria started and the US rushed with their affirmations to blame the Assad government the risk aversion was established among investors.
If a war is to be occurred the safe heavens would start to appreciate and also the price of oil to rally. This time it took only some press declaration for the safe heavens to start appreciation. The Japanese yen reached monthly highs and also the US dollar started to gain in front of his counterparts. Today the conflict in Syria came second after the release of the United States GDP. It was expected an economic growth of 2.2%, but the official number was actually a 2.5% rise.
Chart: EURUSD, Daily
The publication of the GDP triggered new buys for the US dollar so the EURUSD drop under 1.3250 support and reached 1.3200. Here, Euro has found some buyers, but the drop might not be finished yet. We are expecting a short drop under 1.3180 before another correction, as you can see on the chart. There is a possibility for the buyers to hold on at 1.32, if this would be the case, then we could expect a rally back to 1.3400.