The pair managed to breach support for the minor bullish channel due to the negative effect from momentum indicators on the four-hour chart. Meanwhile, trading is belowSMA 50 is adding more pressure on the pair, which could push it towards pivotal support 1.2210 forming the suggested neckline for the bearish technical pattern that is currently forming. From here, we warn of the importance of trading for support level 1.2210 that will lead to its breach could initially reach 1.2070 and resistance 1.2300, where the scenario's breach bullish technical pattern on the larger image above shown yesterday.
The trading range for today is among the key support at 1.2080 and the key resistance at 1.2470.
The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.
Previous Report Weekly ReportSupport1.22101.21701.21001.20701.2040Resistance1.23001.23351.24001.24701.2500RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.2010 targeting 1.2070 and stop loss above 1.2300 or buying the pair with the breach of 1.2300 targeting 1.2470 and stop loss below 1.2210, might be appropriate.