Short-term bearish bias
Key levels: downside: 0.7080 / upside: 0.7115
The pair has been dropping steadily within a channel on the daily chart. 0.7190 near the upper band is a strong resistance to crack, its break could mean a potential reversal in the medium term. However, as long as it holds, the daily sentiment remains bearish.
On the 4H chart, the upward impulse has seen most of its gains given back. 0.7080 is a key support level to see whether more buyers are willing to keep up with the momentum. On the hourly chart, the bearish moving average cross is a sign that the short-term trend could be turning south. Buyers’ failure to maintain the 0.7090 level is a confirmation that sellers have become more aggressive.
A break below 0.7080 could trigger a sell-off towards 0.7060. The upside risk would be a rally above 0.7115.