Trading recommendations on EUR/USD for January 2, 2015
Recently, the daily fixation below 1.2360 (the lower limit of the previous broken congestion zone) extend 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 exposing price levels of 1.2120 and 1.2020 (Significant Fibonacci increase levels).
Basically, the euro sentiment will perhaps remain negative upon the news that the ECB would announce QE at the first January policy meetings.
As well, bulls should be looking price level of 1.2020 (psychological SUPPORT level, also corresponds to the lower limit of the illustrated movement channel).
Activity in the market was partial as New-Year’s holiday pushed into a tight sideway movement during the past few days. Nevertheless, as estimated before, an obvious 4H break-down below 1.2150 exposed the full-range breakout projection target around 1.2030.
According such a strong bearish swing, the market should be waiting for a significant DEMAND level to pause around. Keep in mind that the current price levels haven’t been visited since July 2012.
Intraday traders should now be waiting for LONG positions around these historical low prices.
The best low-risk entries can be taken around 1.2020-1.2000 price with stop loss as daily closure below 1.2000. First bullish target should be positioned at 1.2140.