Recently, the daily fixation below 1.2360 (the lower limit of the previous broken congestion zone) extended 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 ( Important Fibonacci Expansion levels ).

Fundamentally, the euro sentiment will probably remain negative upon the news that the ECB would announce QE at the first January policy meetings.

On the other hand, bulls should be watching price level of 1.2020 (psychological SUPPORT level, also corresponds to the lower limit of the depicted movement channel ).

Activity in the market was limited as New-Year's holiday pushed into a tight sideway movement during the past few days.

However, as anticipated previously, an obvious 4H break-down below 1.2150 exposed the full-range breakout projection target around 1.2030.

Following such a strong bearish swing, the market should be looking for a considerable DEMAND level to pause around.

Note that the current price levels haven't been visited since July 2012.

Trade recommendations :

Conservative traders should now be looking for LONG positions around these historical low prices.

The best low-risk entries may be taken around 1.2020-1.2000 with stop loss as daily closure below 1.2000. Initial bullish target should be located at 1.2140.