FXstreet.com (Barcelona) - The EUR/USD plunged after eurozone industrial orders posted the biggest decline since records started in 1996 and German Finance Minister Steinbrueck said the euro would be threatened if the EU stability and growth pact are not taken seriously.

The worsening economic outlook and falling inflation increase the chance of quantitative easing by the European Central Bank. The EUR/USD has retraced over half of its gain after last week's quantitative easing announcement by the Federal Reserve.

The pair found support and closed right at the short-term uptrend. If this is broken, the pair may fall to the 1.30-area support, said Hans Nilsson, analyst at CMS Forex. There is resistance in the 1.37-area. The ECB meets on April 2; it is expected to cut its benchmark interest rate 50 basis points to 1.00% and may announce quantitative easing steps.