1.5420/00 support failed to hold back the bears and the price dropped towards 1.5280/70 level, which resides close to this year minimum – level 1.5230/40. Indicators are all bearish again, which suggests further decline. However the price has recently approached strong psychological support level, which may trigger abrupt bounce. Current situation is rather unclear, especially ahead of the US employment report release. Therefore, even if 1.5270/80 support is breached, trading won’t decline deeper, than 1.5230 level. The price will most likely keep on consolidating at its old minimums ahead of the US employment report. In a medium-term, further decline is the most probable scenario. Sentiment may begin to change only if the price grows above 1.5650.

Analysis prepared by:

Arkady Nagiev
Forex4you analyst