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As we have predicted for some time now euro finally broke down and hit 1.20 handle, finishing Friday's session just few points above it. After this huge decline, pair is likely to consolidate a bit on Monday, so we believe that it will found short-term support around 1.1980 level, and resistance above 1.2050 area, so these would be our short-term buying and selling points.

Since there will be no data releases from Eurozone focus would be on German CPI figures. In long-term trends pair is likely to continue lower, though 1.20 level is important on long-term charts. However, with no economic data to support euro it is hard to imagine any greater-extent rebound in this pair at the moments, so we have no interest in buying it.