Recently, the daily fixation below 1.2360 (the lower limit of the depicted broken congestion zone) extended the bearish targets towards the price level of 1.2250.
The EUR/USD pair continued to move lower after breaking below major DEMAND LEVEL at 1.2250 rendering the price level of 1.2100 as the next targetted SUPPORT where the lower limit of the current movement channel is located.
Fundamentally, the EURO sentiment will probably remain negative upon the news that the ECB would announce QE at the first January policy meetings.
Activity in the market remains limited as holiday pushes into a tight trading range, no real directional movement should be expected .
However, for risky traders, the price level of 1.2150 remains a significant Fibonacci expansion level. Intraday DEMAND should have been expected at retesting.
Please also note that obvious H4 break below 1.2150 theoretically exposes the full-range breakout projection target around 1.2030.
Trade Recommendations :
Risky traders could have benefited from the bearish breakout below 1.2250. This breakout exposes potential projection target roughly located around 1.2030.
Conservative traders should be looking for SHORT positions. Best low-risk entries may be taken around 1.2250-1.2260 (the latest broken DEMAND ZONE).
The material has been provided by InstaForex Company – www.instaforex.com