A larger corrective wave from 1.1990 (Jul’11 low) may be unfolding in a multi-month flat wave within a range of 1.3200 and 1.2000. The setback from 1.2970 (June high) could be a wave (Y) which could retest the 1.1990 support. A reversal above 1.2560 would refocus on the 1.2970/1.3200 resistance initially. A close below 1.2000 however extends the bear run deeper.
The pair is attempting a corrective recovery from 1.2175. Upside focus is now on 1.2340. Hourly consolidation appears to be a continuation triangle. A break above extends the recovery toward 1.2400/1.2480 ahead of tough 1.2560 which is key resistance for the bear trend. The 1.2230/1.2175 support looks to hold in the near-term. A reversal below however would aim for 1.2100 ahead of strong support around 1.2000.