EUR/USD continues its slide following fresh determined dovish words of ECB president Mario Draghi. The pair that traded just below resistance at 1.2570 earlier in the day is extending its falls and isn’t far from completing a slide of 200 pips from the peak on the day. Looking at the daily chart, we can actually see that the pair basically bounced off downtrend resistance, mentioned in the EUR/$ weekly outlook:
In this fall, the pair reached the lowest levels since 2012 earlier in the month at 1.2358. However, at that time it closed well above these levels. It is now on the way to close below them.
Further support below 1.2360 awaits at 1.2320 with much more serious support at 1.2250. On the topside, 1.2440 could offer weak resistance before the very round number of 1.25.
How low can the pair go? Next week’s inflation data could provide a clue.
More: EUR/USD: One More Leg Lower Before Flattening-Out In Dec – Citi
