Trading Recommendations for EUR-USD for January 12, 2015
The EUR/USD pair continued to move lower after breaking below the foremost DEMAND LEVEL at 1.2250 revealing the price levels of 1.2120 and 1.2000.
Further actions from the ECB concerning QE are still doubted. The market was expecting the US Non-Farm Employment sign to drop on Friday. Furthermore, the latest Euro Zone manufacturing release was not that good. All these reasons led to the current negative EUR/USD pair sentiment.
The EUR/USD pair has lost almost 200 pips since the year of 2015 started, as the market is pushing towards its lowest levels since December 2009.
The market now looks oversold below the price level of 1.2000 and 1.1950 (important psychological SUPPORT & the lower limit of the trend channel on the H4 chart).
Now, selling the EUR/USD pair is considered a high-risk position at such historically low prices. Bullish pullback should be anticipated looking for better prices to sell the pair off.
The price level of 1.1950 is the recently established SUPPLY level. Intraday short positions can be taken there provided that the market keeps trading below price level of 1.2000.