Euro Starts Off First Full Week of 2015 with a Whimper
- EURUSD breaks to lowest level in almost nine years.
- EURUSD, EURGBP selloffs may just be gathering shape.
- See the DailyFX Euro Economic Calendar for this week.
As liquidity has come back online in the first days of the New Year, the Euro has been befallen by speculation around the ECB and Greece. Comments made over the weekend by ECB President Draghi have heightened expectations for a German-supported, ECB easing program to help turn the tides of flagging growth prospects in the region, subsequently boosting hope for action at the January 22 policy meeting.
Concurrently, with Greece heading for elections on January 25, all of the sudden there are two potential fundamental landmines within three weeks on the calendar.
In the immediate future, EURUSD looks set for a considerable test of the June 2010 low near $1.1875, with price already having touched the lowest level since March 2006 at $1.1864. A sustained move through said level over the course of January raises the likelihood of a test of $1.1640, the November 2005 low, at some point in late-Q1'15 or early-Q2'15.
See the above video for technical considerations in EURGBP and EURUSD to start off the New Year.
--- Written by Christopher Vecchio, Currency Strategist
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