First up, the king of forex, the EURUSD. All other major currency pairs move in relation to EURUSD. Even if you are trading other pairs, you have to watch this. It is like watching Barcelona vs Real Madrid, all other games for that weekend is relegated to second place.
Watch 1.2400-40 closely. This pivot zone has been in play for a long time already. I think both the bull and bear operators are gunning for this zone. Either the bears will enforce this zone and bring EURUSD down again. Or the bulls will prevail and cause EURUSD to break above this zone.
If bears win, 1.2400-40 as resistance zone will hold. Thereby forming a third point on the falling channel.
Stop loss above 1.2440
Final target profit 1.2100
If bulls win and 1.2400-40 resistance zone is broken to the upside and holds, expect a possible retest of 1.2400 to confirm that the breakout is real. Remember the pivotal nature of support and resistance. Often when resistance zone is broken, it reverses its role to become support zone. If resistance is broken and become support,
Stop loss below 1.2380
Final target profit 1.2700