The Euro has oscillated against the U.S. Dollar in a so-called upward channel that has seen price action break above identified resistance (yellow line). This ceiling turned into support over the last month. At the end of the previous trading week, we noticed that price action broke through this floor and might now be headed straight towards the 1.2550 area.
A closer look, however, shows that the pair has been traveling in a very bearish, yet well-defined, stance over the last three trading days. Euro traders may see a bit of a bounce back as short-term price action against the Dollar appears to be presently located at support. Traders might see a pullback up to identified resistance at around the 1.3120 level before a continuation of the downward trend. Of course, a breakout below support would bode very well for short-sellers and may usher-in a selling-frenzy.
