FX.co ★ EUR/USD Testing Key Trendline Support for October 26, 2012

The EUR/USD market has been bearish the last couple of weeks since finding resistance near 1.3140.
The EUR/USD pair attempted to push lower yesterday, but found a good support at the lower limit of the bullish channel depicted on the DAILY chart above and traded higher earlier yesterday hitting 1.3012.
If the market fixates above 1.2875, it respects the trendline. However, a clear break below 1.2850 is likely a confirmed break of the trendline.
The bias is bullish in the short term, especially if price is able to make a clear break above 78.6% Fibonacci Level around price level of 1.3015 allowing the pair to reach 1.3070 initially.
The H&S bearish scenario (4H chart) also remains intact; but an obvious break back below 1.2950 is needed to continue the bearish pressure retesting the lower limit of the bullish channel and 1.2900 Price Zone.