EUR/USD had its lowest weekly close since 2012 at the end of last week, below 1.24. Can we expect a correction now or is another leg down on the world’s most popular pair? The team at Barclays suggests staying short and provide some nice charts: Here is their view, courtesy of eFXnews: Investors following tactical strategies should consider staying short EUR/USD and selling any bounces this week, advises Barclays Capital in its weekly FX pick to clients. “Dovish comments from ECB President Draghi suggest that the ECB is getting closer to QE. Given our medium-term bearish view on EURUSD, we prefer selling EURUSD on any rallies,” Barclays advises. “Given the generally dismal euro area outlook, we continue to highlight that the ECB will have to do more to re-invigorate inflation, and we expect them to commence EGB purchases as early as Q1 2015. As we highlighted in FX Themes: EUR: Black Diamond slope, we continue to forecast significant EUR depreciation, as poor relative returns to capital discourage EUR ownership,” Barclays adds. In terms of this week’s data, Barclays expects this week’s euro area inflation data to re-affirm the need for further easing measures. “We expect euro area inflation (Friday) to remain unchanged at 0.4% y/y (consensus: 0.4% y/y) and look for an unchanged reading in core inflation (Friday) at 0.7% y/y (consensus: 0.7% y/y) as well,” Barclays projects. “Given our expectations for a virtually unchanged inflation path in the coming months before increasing only slowly thereafter, we see risks of further declines in short-to-medium term inflation expectations, supportive of our bearish EUR view,” Barclays adds. On the technical front, Barclays technical strategist notes that bearish EURUSD view is encouraged by the recent sell-off against a cluster of resistance in the 1.2600 area. “The 50-day average has reliably capped upticks in price over the past six months, and nearby trendline resistance provides additional reason to sell. We look for a break below the 1.2355 area to confirm extension of the greater bearish trend towards our next targets in the 1.2100 area and then the 1.2040 range lows over the coming weeks,” Barclays projects. 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 Opinions share Read Next German IFO rises to 104.7 points – EUR/USD rises Yohay Elam 8 years EUR/USD had its lowest weekly close since 2012 at the end of last week, below 1.24. Can we expect a correction now or is another leg down on the world's most popular pair? The team at Barclays suggests staying short and provide some nice charts: Here is their view, courtesy of eFXnews: Investors following tactical strategies should consider staying short EUR/USD and selling any bounces this week, advises Barclays Capital in its weekly FX pick to clients. "Dovish comments from ECB President Draghi suggest that the ECB is getting closer to QE. Given our medium-term bearish view on EURUSD, we… 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.