With the event risk ahead and the market slightly in over bought zone and the monthly trend line acting as resistance further gains on close basis would be difficult.

Now that the ongoing momentum took the pair towards the 1.2900 plus zone, one can expect a failure.

Dollar bulls lost the plot across the board.

Presently Euro price action is near 34 WMA and the Ichimoku has not thrown any change in the trend.

As we have been indicating in the big picture 1.2780 is the conversion point for bulls and bears and the longer the euro bulls stay around these levels the bigger is the threat for the dollar bulls.

Intra-day supports around 1.2870 resistance around the 1.2940 area are the two focal points. Bias is bullish. Near term however we would attempt on the short side as the rally is overdone.

Strategy : Sell here and 1.2945 Stop Loss:- 1.3022 Profit:- 1.2780