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The pair EUR/USD is being corrected on Wednesday morning after yesterday’s rise to four-month highs.
By 9.00 Moscow time the Euro is at 1.4171 against closing session level of 1.4198 yesterday.

Decline of the Euro has been caused by two main reasons: firstly it is technical overheating of the pair which has been growing in a steady pace for four sessions until last night. Second reason for the rollback of EUR/USD- is parliamentary vote scheduled for today on the program of budget deficit reduction in Portugal. The country ensured that level of GDP would be lowered to 4.6% against the current 7% within the year of 2011. Nevertheless almost three months have passed and almost nothing has been accomplished yet.

Germany can make its contribution into this issue: Berlin can require tofurther details of the program and in case of negative voting results, it will lead to the resignation of the Portuguese government and to the collapse of the Euro.

Therefore, the day is going to be hectic and uneasy for the EUR/USD and all attention will be focused on Portugal.
Most likely the pair EUR/USD will not go beyond the range of 1.4070-1.4220 at the trading session on Wednesday.

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