This level was mentioned in the comments below so if it goes pear-shaped then blame Gringo whereas if it proves successful, then I’ll take all the accolades.
There is the possibility of a basing formation emerging and this is backed up by the order boards with (seemingly) a lot of bids now emerging below 1.2250. The levels to watch are 1.2230/40 firstly and of course the recent lows at 1.2145. If the market fails to break below 1.2230 and starts forming an hourly low, it might be a signal for the EUR/USD bottom pickers to jump on board for a hopefully fast ride back towards 1.30.
For those out there who point to the terrible fundamental outlook I will say that the outlook was exactly the same when the EUR/USD was at 1.50, only the sentiment hadn’t quite turned yet. Price is important.
