• Euro consolidation has been the theme over the last 24 hours or so as the spot rate finds support just above 1.2550. The notion is set to come to a head now as the exchange rate is likely to test resistance provided by the 1.3228-1.2945 descending trendline resistance. The trendline is being combined with resistance barriers currently residing at 1.2598.
  • A failure to overtake the 1.2598-1.2600 barrier would open scope for the pair to drop to 1.2500.
  • Conversely, additional resistance barriers at 1.2650 are likely to come into play should the price action break the aforementioned trendline resistance. The 1.2650 is likely to have more heft to it served as a major low for the 2012 year.

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