EURUSD breaks below 1.2706 support, suggesting that the medium term downtrend from 1.4719 has resumed. Further fall could be seen to test 1.2329 (Oct 28, 2008 low) support. As long as this level holds, we’d expect range trading between 1.2329 and 1.4719 to continue. However, a break down below 1.2329 level will indicate that the consolidation from 1.2329 has completed, and deeper decline is expected to 1.1500 zone.
For long term analysis, EURUSD formed a cycle bottom at 1.2329 level on weekly chart. Consolidation in a range between 1.2329 and 1.4719 would more likely be seen in next several months.