The daily swing high, around the 1.2245 area, coincides with the upper end of a declining channel formation on the 1-hour chart. This is followed by the 100-day SMA resistance, currently near the 1.2270 region, which if approved could be considered a new trigger for intraday bullish traders.
Meanwhile, the technical indicators on the 4-hour charts have not yet gained much traction and have retained their bearish bias on the daily chart. The line-up requires some caution before placing further bullish bets and positioning yourself for further valuation moves.
Therefore, it is wise to expect a strength above 1.2300, above which the pair is likely to extend this week’s strong rebound below 1.2100 and aim to test the bidding zone 1.2340-45. Some follow-up purchases may further raise the pair to claim the 1.2400 level.