After a pullback from 1.1600 we have seen the pair lose momentum and enter a period of consolidation. Last weeks close and actually most USD pair closes look to indicate that there is certainly still downside movement in this pair and for the short term at least 1.2500 and 1.2380 look to hold the keys to the direction of the pair. It stands to reason therefore that a break of the highlighted region at 1.2470 is going to act as our entry point as we target a return to the support zone
at 1.2380. it is around 1.2380 that the pair will have a choice to make and we will either see the bounce and most likely new high formed or we will breakout and crash rapidly down to 1.2280. either way now we understand these levels we are able to use them to our advantage and simply trade away from them. A break above 1.2700 will invalidate this analysis but at the same time I will give myself a pat on the back for it finally fulfilling my overall long target.