The EURUSD declined strongly yesterday , after losing the key support mentioned previously 1.2990,trades now below 1.2900 levels.
This situation indicates that pull back from 1.3171 might not completed yet ,consolidation from 1.3171 is still in progress as long as stability is below 1.3000 levels, stability below the key resistance1.2885 would extend the consolidation toward 1.2770 , losing the key support 1.2770 would mean that the bullish momentum in short term is lost, Intraday bias would turn to bearish,a clear break below 1.2655 would completely end the bullish phase , and confirm topping at 1.3170, then long term trend should resume toward 1.2000 the rest of the year !!!!
But in return , a clear break above the key resistance 1.2885 would increase the risk toward 1.3000, Above 1.3000 - with daily/4 hour close - will flip bias back to the upside for 1.3070/1.3170 levels.
Fundamental focus today is on Beige Book at 06:00 PM GMT, volatility is suggested in both directions, tomorrow we have Jobless Claims from United States at 12:30 PM GMT, expectations : 368 K, If goes this way , EURUSD would fall, but any release above 368K would flip bias back to the upside !!!
My opinion, the key support 1.2770 is able to contain the consolidation from 1.3171, sooner or later the pair should test the sloping resistance line of the downward channel around 1.3000 - as shown on the daily chart below - before the next move (Up/Down)!!!!
Resistance 1.2885 1.3000 1.3110
Support 1.2770 1.2655 1.2540
Intermediate Trend Direction : Neutral
Major Trend Direction : Downward