Short-term bearish bias
Key levels: downside: 1.1180/ upside: 1.1215
The pair is inching towards the major daily support of 1.1180. This is an area of congestion where we can expect both profit-taking and bargain hunting. Should it hold, the price could bounce into a rally. Its break though might trigger a sell-off.
The price has retreated along the descending 20-period moving average. The sentiment remains bearish as long as key resistance levels keep depressing the price. The RSI is still in the neutral zone, suggesting that there is enough room on the downside. On the hourly chart, the latest bearish MA cross was a sign that sellers have regained control in the short-term. The widening gap between the MAs means the drop has accelerated.
The price is likely to dip next to the key support level of 1.1180. On the upside, a rally above 1.1215 could herald a rebound.