EUR/USD Forecast: Breaking The Range Opens Way For $1.1420

With the EUR/USD breaking lower bound of current range at $1.1570, slide further towards $1.1420 is seen likely.

The major cut back for the Euro came from the ECB meeting late in October when the Governing Council decided to prolong the asset purchasing program at least for another nine months and to cut the volume of intended asset purchase to half from January.

Since the ECB October meeting, Euro was trading against the US Dollar in a narrow range of $1.1570-$1.1680 the FX market is waiting for the fundamental impulse that might be provided by policy speech or macro indicator development.

While series of positive macro news including forward-looking indicator like Eurozone services PMI was not enough to keep Euro supported, it looks like it was German industrial production dropping by 1.6% over the month in September that added enough of the Euro negative sentiment to power the break lower.

With the EUR/USD closing below $1.1570 the slide lower opens the way for $1.1420 target, representing 50% Fibonacci retracement of an uptrend on EUR/USD starting in May and peaking at $1.2093 on September 9.