Short-term uptrend (blue) line has led the price to 1. 2520/00 support, like expected, where it still resides, attempting to test this barrier. Indicators suggest further decline. The only question is whether the bears manage to breach 1.2520/00 level or not. If they do, the price will drop further down to 1.2430/15 level, and then to local minimums, found at 1.2280/70 support.  Should trading retrace above 1.2650 resistance, the alternative scenario will come into play, and the price will most likely climb towards 1.2800 level.

Analysis prepared by:

Arkady Nagiev
Forex4you analyst