EUR continues downside to 1.2210, ECB to confirm the policy

EUR has continued the free fall which started nearly 10 weeks ago. News from the EU and Germany are continuous worse and worse while over the Atlantic Mrs.Yellen continues to reduce the stimulus program. From the other side seems that 1000 pips were not enough for the big players to take their profit and they continued to sell EUR. Are they brave enough to bring the price to 1.2210? Technically this is not impossible. This price is the monthly SMA200 line and it is a good target. This monthly SMA has already capped two downside attempts one in June 2010 and another in July 2012. We can notice that this happens every two years since the global economic crisis has started in 2008. So it is quite possible in October to reach our final target 1.2210 and to start a recovery from there. But for now EUR is extremely bearish on all time frames and i expect more slide for today. For this another worse CPI data from Germany today will help. On Tuesday and Wednesday i expect some recovery after the huge drop last week. On Thursday we have the ECB meeting, and i don't think the bank will implement any new measures, i am almost sure they will confim their current policy which may extend further the EUR losses.

GOLD is also not happy with the expensive dollar. The price has stopped at the support area 1212-1215 for now and if we take a look back we can see that the price usually makes a quick test of the 1180 support when it drops below 1210. So inside the area 1210-1180 movement is usually quick downside and quick recovery after that. If you make frofit on the downside take it and run away.

NZD what a looser is that, it drops like an iron ball to the ground. The price crashed into the Monthly Senkou Span A level, and here is the improtant moment. Shall we enter into the monthly cloud or not. Unfortunately i have no answer too, i will leave the market to tell this. But to start more significant recovery we need to be back above 0.7860. The price is extremely bearish on H4, Daily and Weekly, while smaller frames already showed some recovery signs.

AUD shows continuous weakness after the price was rejected by the negative Weekly Ichimoku and now we are going to test the Weekly bottom at 0.8660. I may say also that we have all the chances to record a new low this week. On Monthly we have the Senkou Span B level at 0.8540 so this is the possible target of the downside move.

JPY continues to loose price too, but the Weekly frame shows beat that for now the price is not able to break above 109.50. Of cource we are pretty close and a new high may be recorded at any moment, The difficult thing wll be to close the week above 109.50. All time frames are bullish and another upside is quite possible with target 110.60.

GBP is locked in a pretty wide Weekly range and will remain here for several weeks. This range is between 1.6040 and 1.6440. we are bearish below 1.6290 so sell below that with a tight SL and target 1.6140-50.

RUB gave up last Friday and allowed the Dollar to close the week at another fresh high. The pair is bullish above 38.70, below that we shall test 38.50, but the bullish outlook will remain. Buy above 38.90 with no more than 20 pips SL and use H4 frame for reference .

For today:

SHORT EUR below 1.2680 SL 1.2690 TP 1.2630-1.2610-1.2585-1.2560

LONG EUR above 1.2560 SL 1.2550 TP 1.2640-1.2660-1.2720-1.2750-1.2790-1.2820

SHORT GOLD below 1210 SL 1213 TP 1202-1190-1185-1180

LONG GOLD above 1186 SL 1183 TP 1196-1205-1215-1230

Good luck!