EUR/USD is continuing a gradual, yet very persistent fall. It pauses only shortly at support level and is now threatening to completely erase the levels of the past two weeks. Here are 3 main reasons for the drop of the euro, that may certainly continue beyond today. Spanish Downturn: Spain’s unemployment rate doesn’t stop rising. It reached 23.3%. And now, the government projects an even higher rate in 2012. Spain is expected to see a deep, not mild recession, with a contraction of 1.7% in 2012. It defies Brussels’ deficit target of 4.4% and sets a goal of 5.8%. Spain is the euro-zone’s fourth largest economy. Spain is back in the scene. Big time. Greek Default: The grefault is getting closer. Yet again, smiles were seen in Brussels, but a final green light for bailout funds wasn’t given. It was delayed in a week, and until then, at least 5 things could go wrong. LTRO: The banks got nearly €530 billion of cheap cash from the ECB. They are more stable now, and this could be a good time to let Greece go. Worse still, this extra cash devalues the euro and moves outside of the zone. The second round of LTRO turns the indirect QE made by Draghi into a euro-debaser, like the US dollar QE did for the dollar. Kathy Lien shows what happened with the first LTRO. EUR/USD Technicals The pair had a double top at 1.3486. Since then, it dropped to struggle with 1.333 and then traded under this line and found support at 1.3280. After 1.3280 was lost, it stopped to pause at 1.3212, but not for long. The next line is 1.3150, followed by 11.3050. For more on the euro, see the EUR/USD forecast. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forex Articles for the Weekend Yohay Elam 10 years EUR/USD is continuing a gradual, yet very persistent fall. It pauses only shortly at support level and is now threatening to completely erase the levels of the past two weeks. Here are 3 main reasons for the drop of the euro, that may certainly continue beyond today. Spanish Downturn: Spain's unemployment rate doesn't stop rising. It reached 23.3%. And now, the government projects an even higher rate in 2012. Spain is expected to see a deep, not mild recession, with a contraction of 1.7% in 2012. It defies Brussels' deficit target of 4.4% and sets a goal of 5.8%.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.