Short-term bearish bias
Key levels: downside: 1.3380 / upside: 1.3430

The pair is showing signs of over-extension after a buoyant rally above both 1.3330 and 1.3370 daily resistance. The bullish MA cross is a confirmation that the price has returned to its previous uptrend. The RSI indicator has also achieved new highs while staying below the 70 over-bought zone.

On the 4H chart, the price has broken below both MAs, suggesting an exhaustion after a meteoric rise. The RSI has pulled back from the over-bought area. A short-term consolidation is likely with a deeper retracement. On the hourly chart, the bearish cross on 8 March was a sign that buyers have pulled out and selling pressures have increased. Since then both MAs have acted as solid resistance to depress the price.

A break below 1.3380 could trigger a larger sell-off. On the upside, the uptrend could resume should buyers push through the short-term resistance at 1.3430.

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