The pair saw another bearish week. On Friday's session the pair managed to recover 80 pips and closed at the highest point. This week, the key economic events falling on Wednesday are Industrial production, Thursday German final CPI, French CPI, and US unemployment claims. The major key events falling on Friday are French and German prelim GDP, French non-farm payrolls, US retail sales and core retails sales. We expect a huge volatility this weekend. The pair has weekly resistance at 1.2580, 1.2630, and 1.2770. Until the prices close below 1.2500 on a daily basis, the bears will have an upper hand. As we recommended earlier, sell on every upswing with the downside initial targets at 1.2300 and 1.2230. As we know, President Draghi said the ECB would soon start the purchases of asset-backed securities for two years. On the downside, the pair has support at 1.2350, below this 1.2226 is the major support level.
For an intraday view, the prices are closed and trading above 12ema and 35DEMA. But the pair has strong hourly resistance at 1.2480. Above this, 1.2505 will act as another resistance level. On the down side, the pair has support at 1.2460, below this at 1.2435, 1.2410, and 1.2366. In case, if the pair correct below 1.2400 again the selling pressure will increase. The panic will be triggered below the 1.2358 levels. We recommend buying only above 1.2485 with the targets at 1.2500 and 1.2530 levels. Risky traders use sl 1.2485 selling on an up move. On a positional basis, we recommend selling on every upswing.
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