Short-term bullish bias
Key levels: downside: 0.8555 / upside: 0.8630
The pair has successively broken above the 0.8670 resistance level and the 30-day moving average with a strong momentum, which indicates increasing buying interest around the psychological level of 0.8500. The RSI indicator has risen back from the 30 over-sold area, confirming selling pressures have eased off.
On the 4H chart, the price has bounced off the 0.8530 support level. The faster MA has crossed above the slower one, suggesting a potential turn in market sentiment. On the hourly chart, the price has rallied above both MAs, broken the resistance in the process. In the meantime, the RSI recovered from the over-sold territory, which confirms that the price action has established enough bullish base for the next rally.
An extended rally could push the rally towards 0.8630. On the downside, a break below 0.8555 might dent the bullish sentiment.
