Assumption that the pair will make attempts to grow came true, the price failed to break resistance 1.2770 and found itself in a narrow sideways range, because support 1.2670/80 was strong enough not to let the “bears” bring the trading below. The price currently resides at 1.2720/10. Indicators are more inclined to the “bullish” potential and SS’s escape from overbought zone is a good evidence for it. Level 1.2760/80 is currently seen as key resistance. If it’s breached, level 1.2870 is expected to be the next on the way of a downtrend, after which levels 1.2960 and 1.3040/50 are likely to be tested. At the same time, the “bearish” scenario is also a high possibility. If the trading descends below 1.2670/80, the price is likely to reverse to its local minimums around 1.2590/1.2600 and then 1.2540/20.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst