Price action context
On the 29th, the pair hit the lower part of a multi-year resistance zone (0.9125 – 0.9325) and got heavily rejected, selling off 150+ pips in only 2 days, bringing price back to a short-term key support. The last 3 times price touched this area, the bullish reaction to it was strong. This time around though, there is almost no rejection at all, indicating very low interest from the buyers in this area, suggesting this support might be failing to hold.
Trending analysis
Mid-term bias is still bullish whilst price is holding above 0.90, but should we get a strong break and daily close below 0.90, we’d change our mid-term bias to bearish and weak pullbacks into the broken support, which then should act as resistance could then offer potential shorting opportunities. Should bulls on the other hand be able to successfully defend this key support, a move back up towards 0.9070 is likely.
Closest support & resistance zones
Resistance: 0.9065 – 0.9080
Support: 0.9000 – 0.9015
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