A week ahead (10/02-10/09)

As we mentioned on our previous weekly report, 1.2730 was expected to act as a key level which would guide towards the potential market objectives during the next couple of days.
The level has been breached and the Euro extended the decline into the middle area of 1.26 where it established the lows at 1.2630, which is yet another mid-term key support. So far, the 1.2630 barrier remained intact, the Euro gained strength and the bulls encouraged a break of the 1.2730 resistance level, breach happening today. Breakouts above the 1.27 mark, including the area’s resistance levels which are seen at 1.2730 – 1.2760 and 1.2780 may easily help the development of a bullish momentum. A daily close above the 1.2750/60 levels (downward channel resistance on daily chart) is needed in order to confirm the progress towards the previous peaks set at 1.2830 and potentially 1.2930. Support is now seen at 1.2730. Subsequent floors are formed by 1.2660 and 1.2630.
We are looking forward for a re-test of 1.2830 which is possible as long as the Euro will be supported into the 1.27 area, this way keeping the 1.2660 and 1.2630 levels safe.