We’ve finally managed to break the recent range to the downside after 1.2350 gave way and the next level holding us up is at 1.2320.
EUR/USD M15 chart 03 12 2014
The sellers are chipping away at the buyers but failing to break through just yet.
After the break of 1.2350 the next big level to look out for is the June 2010 support line at 1.2225/30, which is joined by the 200 mma (h/t Ricardo)
EUR/USD Weekly chart 03 12 2014
From there it’s the July 2012 low at 1.2030/35 that’s the last barrier before the big 1.20.
The broken 1.2350 is the first place to look for a resistive move if we go back up and even if we break 1.2320 there’s still going to be enough around 1.2300 to slow progress.
The PMI’s this morning helped the pair make a choice over direction and the nerves are jangling as we inch closer to the ECB meeting tomorrow. Even if Draghi holds off mentioning a closer QE program any rally is going to look choice for short.