Short-term bearish bias
Key levels: downside: 1.1225 / upside: 1.1266

The bearish sentiment has intensified after the price dropped below the 61.8% (1.1280) Fibonacci retracement level, which would suggest there is not enough buying power to support the previous rally. The price is now testing the 76.4% (1.1240) level.

After breaking the 1.1330 key support level, the price went into defensive with a series of lower lows. The bearish MA cross on the 4H chart was a confirmation that the sell side has taken over. On the hourly chart, the downtrend is likely to persist as long as any pull back is contained by the 30-hour MA. The RSI indicator is in the neutral zone, and we could expect more downside in the next few hours.

The next target on the way down would be the 4H resistance of 1.1220. The upside risk would be a rally above the immediate resistance of 1.1266.

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