Level 1.2760/80 proved its status as a key resistance level and didn’t let the “bulls” continue their growth. The price currently resists at 1.2730/40. Indicators show growth, though R% hesitates, smoothing out the “bullish” mood. It’s worth nothing, that the situation hasn’t changed significantly, so resistance 1.2760/80 breakout remains the major event. If it takes place, level 1.2870 will be breached afterwards with possible levels 1.2960 and 1.3040/50 tests in the nearest time. The “bearish” scenario has chances to realize either – a fall below 1.2670/80 will indicate reversal to the new local minimums around 1.2590/1.2600 and then 1.2540/20. Short-term channel trend line breakout (red bold lines) will be the first signal to the “bearish” trend.

Analysis prepared by:

Arkady Nagiev
Forex4you analyst