Trend Direction: Bearish.
Trend Reversal Level: 1.2900
Key Support Levels: 1.2760, 1.2700, 1.2620, 1.2500
Key Resistance Levels: 1.2820, 1.2900, 1.3000, 1.3100
Entry Strategy: Selling rallies in a downtrend below our trend reversal level.
Trade Suggestion: Yesterday we saw breach of 1.2800 critical support level and prices dropped to as low as 1.2732 after Bernanke's testimony. It also breached the trendline support which comes around 1.2780, it gives a bearish sign now. We have a double top at 1.3000 level, prices failed to trade above that.
Market is also waiting for EU Banks stress test result which is due tommorow, this will be the catalyst for EURO pairs in the sense of direction. For now we stay bearish and this pair has a resistance at 1.2820 level, where price may be capped from further corrective rise to the upside. Our suggestion is to for look short opportunities at 1.2800 to 1.2820 level targeting 1.2760, 1.2700 followed by 1.2620.