The downside will find bids at minor Fibo support 1.2325 ahead of 1.2300. Below here would head back to the trend low at 1.2246 which in turn lies just ahead of the next major level at 1.2225 (200 Month MA) and will act as strong support.
As we said before, if/when the 200 MMA is taken out, the Euro would then head towards the major rising trend support (joining the 2005, 2010, 2012 lows) at around 1.2140, and then to 1.2100 which is the 50% pivot of the rally from the Euro Oct 2000 low to the July 2008 high and again, should also provide decent support. Under that, which would see the long term head/shoulder neckline being broken, we have the July 2012 low at 1.2041 and the June 2010 low 1.1876, which both come ahead of 1.1743, where the Euro was initially pegged to the dollar in January 1999.
The immediate resistance now comes at comes at around 1.2380 (minor), above which see a return above 1.2400 and beyond towards 1.2470 and then to the session high at 1.2515, although this is now looking rather distant. Above 1.2515 would then head towards the pink descending trend resistance line at 1.2570, and with the dailies pointing higher then look for the chance of a run up to the 19 Nov high at 1.2490. A break of 1.2500 would trigger stops to potentially take the Euro on towards the 26 Nov high at 1.2531, above which, the first major Fibo resistance is not seen until we reach 1.2590 (23.6% of 1.3699/1.2246), with the greater Fibo level not seen until 1.2656 (23.6% of 1.3993/1.2246).
Watch out later today for the German IFO and the US flash Services PMI and the Philly Fed Mfg Survey
Economic data highlights will include: