Technical outlook and chart setups:
It seems that the single currency pair could be preparing to print higher highs from here on. The channel line depicted here has remained intact till now and it continues to hold, we would not be surprised to see fresh highs. It is recommended to remain flat for a while and let the prices react at 131/132 region which is the 0.786 resistance zone of the fall from 134.00 level to 125.00. Only a break below the channel line support would be a proof to sell aggressively again. Immediate resistance is the 133.80/134.00 region; while support is around 128.00 on the channel line. Prices could take a dip around 131.00 level before rallying again.
Trading recommendations:
Flat for now. Looking to sell on a channel line break or buying at channel support.
Good luck!
