1.2430/15 support held back bearish attacks and the price pulled back up and now resides at 1.2560/70 level. However, indicators are not turning more up, which gives reasons to anticipate a possible stop. Before the price breaches  1.2650 resistance, bearish trend has to be considered dominating, therefore current retracement up has to be considered a correction within a downtrend. Further bullish attempts to push the price higher may continue, but the price won’t ascend above 1.2650 level anyway. However, if the pulls do manage to push the price higher than this resistance, decline will recommence after trading tests 1.2800/20 levels. Decline below 1.2520/30 support will indicate either a reversal towards the bearish development or correction within 1.2600 – 1.2430/15 range. Decline to the local minimums at 1.2280/70 support is also possible.

Analysis prepared by:

Arkady Nagiev
Forex4you analyst