EUR/USD briefly touched levels last seen a very long time ago, but then bounced. Is this a correction or just the initial move? The team at BNP Paribas pick the latter scenario, explain and provide targets: Here is their view, courtesy of eFXnews: The stars are aligning to drive EUR lower with EUR/USD is the preferred candidate to maximise profitability, says BNP Paribas. “EURUSD reached its lowest level since Q1 2006 at 1.1864. Concern over the upcoming Greek election on January 25 is a contributing factor but the real driver is falling inflation and hints from ECB members that direct policy action – namely sovereign QE – is imminent,” BNPP notes. “Interviews published last week with both Draghi and Praet hint at our economists’ call for broad-based QE to be announced at the next policy meeting on January 22,” BNPP adds. Along with that, BNPP notes that this morning’s much lower December CPI readings for the German Bundeslander are consistent with a lower German HICP today and also BNPP’s call for negative eurozone CPI on Wednesday (- 0.1% y/y). “Both releases should weigh further on EUR if correct,” BNPP argues. Finally, BNP Paribas Quant model ‘STEER’ model signals EURUSD at 1.1898 (see chart) suggesting that the fall is consistent with market fundamentals. “We believe EURUSD will fall further…This week’s inflation readings are set to be the prime catalysts,” BNPP projects. In line with this view, BNPP maintains a short EUR/USD in its portfolio from 1.2520 (entry on October 31) targeting a move to 1.18. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam EUR/USD DailyForex News Today: Daily Trading News share Read Next UK Services PMI falls to 55.8 – new low for GBP/USD Yohay Elam 8 years EUR/USD briefly touched levels last seen a very long time ago, but then bounced. Is this a correction or just the initial move? The team at BNP Paribas pick the latter scenario, explain and provide targets: Here is their view, courtesy of eFXnews: The stars are aligning to drive EUR lower with EUR/USD is the preferred candidate to maximise profitability, says BNP Paribas. "EURUSD reached its lowest level since Q1 2006 at 1.1864. Concern over the upcoming Greek election on January 25 is a contributing factor but the real driver is falling inflation and hints from ECB members that direct… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.