As apparent on the chart, this price decline has remain within the prevailing channel down. In case the sentiment continues to dominate, the US Dollar would breach its two-month range, thus pointing to further decline within the following trading sessions.
Conversely, the rate might still re-test the 55-hour circa 1.2704, but this area is likely to hold, as it is also reinforced by the monthly S1 and the 38.20% Fibo.
During this time, the pair has been trading in a steep descending channel. Even though the prevailing direction is still tended southwards, the Greenback is gradually approaching the upper boundary of this pattern.
This suggests that an upward breakout might occur next week. This assumption is likewise supported by weekly technical indicators.
In the meantime, the pair might still edge lower during the remaining week, setting the monthly S3 at 1.2493 as a possible target. It is unlikely that the pair falls below this level.
The pair had slightly stopped at the few support levels near the 1.2580 mark, but they did not reverse the direction or hold out for long.
By the middle of Friday the pair was expected to reach the 1.25 mark. The reason for that was the fact that only below that mark the closest support levels are located.
This change in sentiment suggests that the Greenback might finally overcome its recent weakness and re-gain some of the lost positions. Given that the pair faces some significant resistance levels along the way, the US Dollar might fail to pick up speed right away.
In case bears manage to prevail during the following session and thus move the rate below the 1.25 mark, the weekly S1 at 1.2487 is likely to provide notable support.