EUR/USD finished mostly unchanged at 1.2935 on Thursday after consolidating recent losses between 1.2922 and 1.2978. The price action resulted in an inside day price bar, which suggests further downside potential; so far in Asia, the pair is virtually unchanged.

Technically speaking, the pair is turning bearish according to the hourly chart, with indicators heading south below their midlines. Valeria Bednarik, Chief Analyst at FXstreet.com says that any break below 1.2910 should point for a bearish acceleration in the pair, with buying interest expected at 1.2880 and 1.2835, while, to the upside, resistance levels lie at 1.2970, 1.3010 and 1.3045.

“Friday may see some volatility over Spain announcements to overhaul ailing banking system, while some profit taking may also be seen in the pair ahead of uncertain weekend,”