Long-term trendline support breaks, but the pair manages to find a way to climb back above it

The key long-term trendline support that stretched all the way back to April last year was broken in trading last week, but the 8 February lows of 1.2212 provided some good support for the pair - as it bounced from there back to current levels of 1.2272.

The jobs report on Friday did little to help give the dollar a lift, and that helped the pair to end the day higher but the key downside risks here still remains.

If last week was indeed a false break, the long-term trendline support should lend itself as a good friend for buyers this week. In terms of what to look out for in the trading day, there's no key data to help aid direction so it'll be a lot to do with the ebb and flow.

I reckon we may hug these support levels for quite a bit if that's the case.