The pair has plummeted on Friday achieving a convenient breakout with a daily closing below SMA 20 for the first time since August, 02 as seen on the provided daily graph. Fibonacci retracement tool shows that the correctional wave started at 1.2040 has been limited at 76.4% level for the decline from the important peak of 1.3485 to the aforesaid significant low. Hence, we suggest additional losses over upcoming sessions aiming to challenge 1.2590 regions; noting that a break below 1.2760-1.2750 will confirm and accelerate the downside move. Assessing indicators, AROON, Parabolic SAR and MACD are negative reflecting the strength of the bearish trend while Stochastic may cause some kind of fluctuation.
The trading range for this week is among key support at 1.2500 and key resistance at 1.3165.
The general trend over short term basis is to the downside targeting 1.1865 as far as areas of 1.3550 remain intact.
Support 1.2750 1.2700 1.2630 1.2575 1.2500
Resistance 1.2915 1.2955 1.3000 1.3080 1.3165
Recommendation Based on the charts and explanations above our opinion is, selling the pair around 1.2850 targeting 1.2600 and stop loss above 1.3000 might be appropriate this week.