The dollar appreciated further against its rivals this Monday European session, with the EUR/USD reaching a fresh 2-year low of 1.2252. In Germany, industrial production was up 0.2% in October against the 0.3% expected, whilst September was revised higher to 1.1%. But the pair accelerated its decline after ECB’s Nowotny said there are high probabilities of lower inflation rates in Q1 2015.
The 4 hours chart for the EUR/USD pair shows price still developing below a bearish 20 SMA, whilst momentum retraces from 100 and remains in negative territory, as RSI approaches 30, supporting further slides: a downward acceleration through 1.2240 should trigger such continuation, aiming to test the 1.2200 figure. The 1.2300/20 area should attract sellers if reached, and it will take a price acceleration above it to see the pair correcting higher up to 1.2350/70 price zone.