On Friday our pair slightly regained its position after the lack of strong data on the US economy. Therefore, we observe a price correction. Today a number of ECB members' speeches will take place, and a member of the FOMC (James Bullard) will give a speech in the US.
Despite a small recovery, we do not believe that the correction will be strong and the pair will manage to climb high. At the moment we see that our price is traded between fixed levels and can soon approach the level of 1.20, from which we expect the continuation of the downward movement.
Speaking of technical indicators, the MACD is at the zero mark, and the Stochastic has gone to the overbought zone. The trend remains descending and we recommend taking short positions from the resistance level and counting on the reverse movement to the levels of 1.19 and 1.1860.
