Friday’s large and aggressive downside move led to a fresh 27-month low of 1.2357. Market participants sold the euro following Draghi’s promise to apply additional measures such as more asset purchases in order to raise inflation and inflation expectations in the region.
Since the sharp drop on Friday, prices have consolidated just above this level and hugged the 78.6% Fibonacci level (1.2460) of the upleg from 1.2040 (July 2012 low) to 1.3992 (May 2014). A break below 1.2357 will open up a test towards the key psychological level of 1.2300. To the upside te market is capped at the 1.2600 level.
Overall the trend for EUR/USD is bearish as the market remains below the Ichimoku cloud and the tenkan-sen and kijun-sen lines are negatively aligned. The RSI is in bearish territory although it has levelled off for now just above oversold territory, suggesting some consolidation in the near-term, waiting for a catalyst for another move lower.Today's German Ifo data is a risk event for the euro.
the IFO survey of German business confidence for November is expected to have declined somewhat to 103 from the previous month’s 103.2 reading. If the IFO shows additional signs of weakness, the euro could make fresh 2-year lows against the dollar. 
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EUR/USD Targets 1.2300
ByXM Group
AuthorTrading Point
Published 11/24/2014, 03:15 AM
Updated 02/07/2024, 09:30 AM
EUR/USD Targets 1.2300
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