The pair sharply descended yesterday touching support for the main descending channel shown above, as it currently rebounds to the upside in an attempt the last bearish movement due to the effects of the momentum indicators. The bullish correction could halt at 1.2785 to continue the bearish direction, but in return we warn natural trading within the mentioned descending channel, which could push the pair towards 1.3230 - 61.8% Fibonacci correction in addition to trading within this channel -. In result, we recommend observing trading today to be sure of an ideal direction and be aware of the strong possible volatility due to unemployment data that is awaited from the US economy.
The trading range for today is among the key support at 1.2500 and the key resistance at 1.2960.
The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.2450.
Previous Report Weekly ReportSupport1.26151.25601.25351.25051.2450Resistance1.27851.28201.28701.29151.2970RecommendationBased on the charts and explanations above our opinion is to avoid trading awaiting more confirmation signs for the pair’s direction, might be appropriate.