The moment of truth is near. This week the ECB will meet and we will start to see concrete plans moving forward. Should the market get the it has been waiting for, we should have no problem perhaps reaching 1.10.
However, with a 500 bn bond purchase program priced in, anything softer could cause a correction back towards 1.26, with possible resistance around 1.18 and 1.22.
The question is whether the plan put forward by the ECB will be enough to push down an already very weakened Euro , or will we enter a period of ranging until we start to hear more about the Fed's rate hike?