“The longer term wave structure is bullish as the decline from 1.2571 is a double zigzag (inverse of the EURUSD rally). A longer term inverse head and shoulders pattern (May 2006, December 2006, April 2007) is also visible.” Ultimately, we expect this rally to span weeks and target 1.2571.
Daily RSI and MACD have just crossed above there midpoints and price is close to challenging the 100 day SMA (the 20 day has turned up and the 50 day is trying to turn up now). Short term channel resistance is at 1.2290 and increases about 6 pips per day. Channel support is at 1.2140 (also increases about 6 pips per day).