FOREX: EUR/USD Reaches Our 1.2625 Level and Hits Major Stops before ECB Meeting Tomorrow

Our YouTube video shows the move lower in EUR/USD to our downside price objective of 1.2625, below which major stops were hit.  Our video from 22 September identified this key level.

European Central Bank is expected to release details tomorrow about its asset purchase program tomorrow after the Governing Council Meeting. ECB President Draghi is expected to detail a

€700 billion scheme to purchase asset-backed securities and covered bonds as part of the ECB's latest foray into quantitative easing (QE).  The ECB is also trying to engender inflation and encourage banks to lend more capital following the ECB's disappointing Targeted Long Term Refinancing Operation (TLTRO) two weeks ago.

The Daily chart below shows the 1.2625 target level that we identified on 22 September and shows many stops hit below this level yesterday.

The Weekly chart below shows our next downside target of 1.2493.

Additional downside targets include 1.2286 and 1.2132.

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