After 3 weeks of a downtrend, the pair managed to close in the green on a weekly basis. The pair has downside support at 1.2350, 1.2300, and 1.2270 or 200Msma. This week, each and every day, the pair is affected by key economic events. Today, ECB president Draghi is expected to testify. The empire state manufacturing index fell to 6.17 last month. We can expect a bounce from a previous month steep fall. On the dollar front, the industrial production report is pending. The pair has recovered 200 points approximately as of now this month, trading with gains. The longer-term picture indicates a sell on rallies. The FED is going to increase its interest rates, which adds fuel to the US dollar. The ECB's easing results weakness of the Euro. The monthly resistance exists at 1.2757 and monthly support exists at 1.2227 levels. The pair has weekly parallel resistance at 1.2577 and support exists at 1.2420.
For today's session, the pair is trading at 20Dsma or 1.2555, above this resistance exists at 1.2577. We recommend fresh buying at 1.2580 with the targets at 1.2615, 1.2639, and 1.2688. In case, if the pair closes above 1.2580 on a daily basis, bulls can challenge towards the 1.2688 levels. As long as the pair is trading above 1.2500 on an hourly basis, bulls have an upper hand. For an intraday basis, as long as the pair is closing above 1.2400, bulls can challenge 1.2666 levels. We recommend fresh buying at 1.2580 with the targets at 1.2600,1.2630, and 1.2660.
Trade:
Buying at 1.2580.
Selling below 1.2500, safe selling below 1.2480.
