The strong move down yesterday may have completed an Elliot wave which could be followed by a counter-trend rally up to resistance at 1.2535/50. Another possibility is that there could be another final wave 5 yet to unfold which could fall to a major support at 1.2445. A break of that would set up for a strong move to the old lows at 1.2287; and even if the pair rallies it should roll-over eventually and fall lower.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst