So far the trading goes inside the Friday’s range (“inside bar” formation). Should the day close this way, traders will get quite a solid sell signal.
Thus key resistance level is Friday’s high (1.2484). If it’s eventually broken, the quotes might recover to the pivot 1.2726 (black trajectory).
Local structure just showed the initial tangible signs of buyers’ weakness in the shape of lower high and break of the closest low (1.2359). Thus there are good odds for downward reversal and start of decline in direction 1.2305 and 1.2140 (in medium term).
Decline in direction 1.2305 and 1.2140.
Shorts to 1.2305 and 1.2140.