Short-term bearish bias
Key levels: downside: 1.3080/ upside: 1.3195
The pair has been inching up along the 30-day moving average in what looks like a triangle consolidation. A break is about to happen and would lead to either a continuation of the current uptrend or a reversal.
The price has shown signs of weakness on the 4H chart. The break below the consolidation zone under 1.3160 may foreshadow a potential sell-off. On the hourly chart, the RSI divergence where the indicator failed to achieve a new high after a higher high in the price action was an advance warning that the buying momentum has waned. The latest low was accompanied by a bearish MA cross and suggests strong pessimism.
After a short consolidation, the pair could be sold off to below 1.3080. A rally above 1.3195 though could provide support to the price.