The euro was trading for several days in a range of 160 pips approximately. The market is waiting for the Federal Reserve to expand its policy of quantitative easing. This could take the euro to the level of 1.33 and 1.35. However, if Europe does nothing by itself to get out of financial meltdown, we can see the euro again close to 1.25 and 1.20 levels.
Therefore, below the 1.2766 fractal daily we expect not only a break of quite strong support but also the beginning of quotes fall to 1.20.
Therefore, we still maintain our bullish outlook for this pair, as long as the pair trades above 1.2750. In case the pair reverses to 1.2766 level, we recommend buying at this level until the next targeted fractal level at 1.3004 and 1.3250 as ultimate goals.
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