Last week's macroeconomic announcements created support at the price level of 1.1870, which is the lower limit of the downtrend channel. So, from a technical analysis point of view this was almost to be expected. Then looking at the indications of the Stochastic it seems that the upward movement still has a lot of room for development because the index has just come out of the oversold level.
In the case that the downtrend that has been created is valid, and it is not a downward corrective move of the main upward trend, a rise of prices up to the resistance point of 1.2070, so that prices cover almost the entire range of the downtrend channel, it is very likely to be verified.
In the case, now, that the movement within the downward channel is a correction, the point 1.2070 and the possibility of its breaking is the first indication for the future upward movement.
In the case that the downtrend that has been created is valid, and it is not a downward corrective move of the main upward trend, a rise of prices up to the resistance point of 1.2070, so that prices cover almost the entire range of the downtrend channel, it is very likely to be verified.
In the case, now, that the movement within the downward channel is a correction, the point 1.2070 and the possibility of its breaking is the first indication for the future upward movement.