Short-term bearish bias
Key levels: downside: 1.1190 / upside: 1.1240
The bearish sentiment remains intact as long as the price fails to rally above short-term resistance levels. The single currency is now resting on the 88.6% (1.1205) Fibonacci retracement level, which would suggest that the price has more momentum on the downside than the upside.
On the 4H chart, the pair has been sliding in a steady fashion below the moving averages. The RSI is still above the over-sold area so there is still room on the way down. On the hourly chart, the 30-hour MA has acted as solid resistance to cap the price’s advance so far. The latest engulfing bearish candle is an indication that sellers are still in the game and striving to put on more pressures. Trend-followers are likely to join in on the bearish side.
The next target on the way down would be around the daily support of 1.1190. The upside risk would be a break above the immediate resistance of 1.1240.
