The Euro - Dollar pair, is highly affected by the decisions taken by the EU, as a result the markets get excited for a while and then probably sell tendency can be seen again.
This week after the ECB meeting the market will be expecting some kind of flexibility. Of course, this could be a shock announcement, but the reality is that the EU governments realize they came to a deadlock at this point. In other words, markets are getting bored with their actions and are willing to punish them if no action is taken concerning sovereign debts.
In the weekly analysis, we noticed an uptrend channel which return to the support could be a buying opportunity, with targets up to 1.2840.
Moreover, a breakdown of this figure could have a bearish impact and the euro could quote around 1.21.
The range indicator is showing medium-term bullish signal.

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