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EUR/USD Will 2350 Hold?
Euro was decimated today by comments from Mario Draghi who made no bones about the fact that he would like to see more QE in order to stimulate the economy. He also noted that he thinks the currency should weaken. Clearly the ECB wants more action and a lower exchange rate but they are being stymied by the German monetary authorities who oppose most of the accommodation measures. On Monday however the market will get a glimpse at the key IFO sentiment survey and if business confidence in Germany shows serious deterioration, German authorities may become much more amenable to some compromise and the euro could set fresh yearly lows.
The EUR/USD now finds itself at the last possible support ahead of the key 1.2350 level. A break there wold open up a move to 1.2250 and possibly a fall to key 1.2000 barrier. Only a move above the 1.2600 figure negates the bearish bias.