The Downside Prevails
Recommendation: SHORT positions below 1.2875 with 1.2625 & 1.2560 as next targets.
Alternative scenario: The upside breakout of 1.2875 will open the way to 1.3020 & 1.3139.
Comment:The market’s failure at 1.2801 helped form the down sloping resistance line of a downward channel on the daily chart, creating a high opportunity for bearish swing traders which may lead to a break to the down sloping support line near 1.2660.Upon last week's move and the new downside momentum that appeared, it indicated that buyers' tries to put in a bottom in 1.2700 zone will likely fail, this will mean a possible acceleration to the downside through the last swing bottom at 1.2660. A break below this level could signal a further decline to 1.2625 to 1.2558 levels in the nearest time .But in return a daily closing above 1.2875 will reverse risk to the upside and target 1.3020/1.3139 levels...