It’s going to be harder and harder for upswing to climb higher without a prior corrective swing. First part of this day goes inside yesterday’s trading range (“inside bar” formation). If day closes this way, we’ll get a tangible sell signal for tomorrow (watch the black trajectory).
There is a solid support at 1.27.37-1.2747, which can quite trigger a development of new upswing (red arrow).
In case this zone is broken the quotes will drop to the 1.2655 mark (watch the red arrow).
Main scenario: Upward bounce off 1.2737-1.2747 and further growth in direction 1.2900.
Alternative scenario: Break of support 1.2737 will drive to fall towards 1.2655.
Longs from 1.2737-1.2747 to 1.2900.
Shorts with count on break of 1.2737 towards 1.2655.