Last week, we talked about consolidation of the pair within the price range 1.2950 -1.3240 and the importance of breakout off this zone for the liberation of the pair.
At the end of the week, the ascending channel was broken down and the pair returned again to the bottom of the range at 1.2950 to refresh the bearish view of the pair in the short-term.
Breakdown of the most prominent support zone around 1.2950 also revives a "Double-Top" pattern on the daily chart.
Fundamentally, There is some significant fundamental data including industrial production and German ZEW to be released today.
The market expects a 0.5% increase in industrial production for March, but stronger than expected readings for Germany, Austria and the Netherlands may see this data point do better than expected. The ZEW survey of German investor sentiment is also expected to pick up in May.
That is why close watching of price action at 1.2950 is recommended to make profit of the possible scenario, the positive news may support the pair to establish a temporary buttom at 1.2950. If not, the double top pattern scenario is activated.
