As shown on the daily chart posted below, the EURUSD is in consolidation mode- in medium term - after losing the key support 1.2940 which is served now as resistance!
A clear break with stability above 1.2940 would be a sign of very persistent bullish momentum, and then price action is testing 1.3075/1.3170 levels A.S.A.P!
But in return, a clear break below 1.2815 would delay the bullish move and extend the consolidation toward the key support 1.2685; losing 1.2685 would mean that the bullish momentum in the short-term is lost!!!
Anyway, keep in mind that the daily trend is bullish as long as 1.2550 holds, the recovery is expected to happen somewhere around 1.2815 or 1.2685 , and to completely get out of consolidation , 1.2550 or 1.3075 should be taken out ?!!!
Here is the economic calendar for the next week (the most important events):
Thursday 04 Oct 2012 at 12:45 GMT
From EURO zone, ECB Monetary Policy , Previous: 0.75%, Forecast: 0.75%, Volatility: Medium, EURUSD Direction: No change/ unknown.
Thursday 04 Oct 2012 at 13:30 GMT
From United States, Jobless Claims, Previous: 359K, Forecast: 369K, Volatility: Medium, EURUSD Direction: Downward.
Friday 05 Oct 2012 at 13:30 GMT
From United States, Employment Situation, Previous: 96K, Forecast: 125K, Volatility: High, EURUSD Direction: Upward.
Recommendations : Buying the pair around 1.2685 targeting 1.2820 & 1.2900 , stop loss 1.2600