Prices are settling into consolidation, as studies turn mixed, but background studies are intact, suggesting fresh downside risks in the coming months. A close below 1.2200 will open up 1.2000 and the 1.1950 year low of October 2016 , with potential for deeper reactions towards the 1.1880 low of May 1985 as the underlying trend from July 2014 keeps investors cautious.
Negative longer term readings see risk of still deeper reactions towards 1.1000.
A close above congestion around 1.2500 would help to improve price action, but a further close above the 1.2795-1.2810 barrier is needed to signal a more sustainable consolidation phase and turn investors neutral once again.
Monthly Investors are .