Short-term bearish bias
Key levels: downside: 0.8510/ upside: 0.8570
Sentiment remains bearish in the medium-term. The pair has been drifting lower along the 30-day moving average. The recent break above the daily resistance of 0.8670 is a sign that selling pressures have waned off, but there is no clear sign of a reversal yet.
On the 4H chart, the break below the key support of 0.8535 was an aggressive push from sellers. The faster MA has crossed below the slower one, which indicates mounting bearish interests. On the hourly chart, the successive lower lows confirm that sellers are in the house. Pullbacks have been contained by the MAs which act as solid resistance. However, traders need to be aware of a RSI divergence which could mean that the downward momentum has eased off.
0.8510 is the next target with renewed selling interests. On the upside, 0.8570 is a key resistance to monitor for the day.