
INTRADAY MARKET INSIGHTS
Bullish bias above 107.05. The pair is off an intraday high of 107.29 seen overnight, but remains at levels above the key support at 107.05. Currently the pair is trading at levels around the ascending 20-period moving average, which stands above the 50-period one. A return to the overhead resistance at 107.30 (around the high of yesterday) would trigger a further advance toward 107.40 on the upside. Alternatively, a break below 107.05 would open a path toward 106.90 on the downside.
Key resistance at 1.1580. The pair stays on the downside after retreating from an intraday high of 1.1601 seen yesterday. Currently the pair remains capped by the descending 20-period moving average. Unless the key resistance at 1.1580 is surpassed, the pair stands higher chances of returning to 1.1545 and 1.1530 on the downside. Alternatively, a break above 1.1580 would call for a further advance toward 1.1600 on the upside.
Key resistance at 0.7155. The pair retreated from 0.7180 with the bearish divergence signal from the relative strength index. Besides, the 20-period moving average is also turning downward. Hence, as long as the resistance level at 0.7155 is not surpassed, look for a return with targets at 0.7125 and 0.7110 in extension. Alternatively, a break above 0.7155 would bring a rebound with 0.7180 and 0.7200 as targets.
Under pressure below 0.6681. The pair retreated and struck to the lower Bollinger band. The pair breaks below the 20-period moving average and tests the 50-period one. The relative strength index advocates for a further downside. In this case, unless the resistance level at 0.6681 is violated, the pair should reach 0.6622 and 0.6607 on the downside. Alternatively, a break above 0.6681 would turn the outlook to positive and bring a rise to 0.6707 as a target.
Under pressure. Although the pair posted a rebound, it is still under pressures below the key resistance level at 1.2745. The relative strength index is around its neutrality level at 50, suggesting the lack of upward momentum for the prices. To conclude, as long as 1.2745 acts as the support level, expect a return with targets at 1.2715 and 1.2690 in extension. In an alternative scenario, breaking above 1.2745 would bring a new up leg with 1.2770 and 1.2800 as targets.
0.9280 expected. The pair remains under pressure below the resistance level at 0.9315 and the declining 50-period moving average. The relative strength index is locating at the selling zone between 30 and 50, indicating a bearish outlook. To conclude, as long as 0.9315 holds on the upside, a further decline to 0.9280 and even to 0.9265 seems more likely to occur. On the other hand, crossing above 0.9315 would trigger a technical rebound with 0.9330 and 0.9350 as targets.
Towards 1.3375. The pair remains on the downside as it has formed a lower-high. In fact, it is capped by the 20-period moving average, which stays below the 50-period one. The relative strength index remains subdued in the 40s, suggesting a bearish bias. As long as the key resistance at 1.3435 holds, the pair should target 1.3395 and 1.3375 on the downside. Alternatively, above 1.3435, expect a revisit to 1.3455 on the upside.
Upside prevails. The pair has accelerated to the upside after breaking above its previous high. Currently, the 20-period moving average has moved further above the 50-period one, and the relative strength index stays above the neutrality level of 50, signaling a bullish bias. Above the key support at 123.67, expect an advance to 124.45 and 124.66. Alternatively, a break below 123.67 would trigger a pull-back to 123.32.
Target 0.9034. The pair has potentially formed a double-top pattern. In fact, it has broken below the 20-period moving average, which has turned downward. The relative strength index has dropped to the 40s, indicating a bearish bias. Unless the key resistance at 0.9108 is surpassed, the pair should proceed to 0.9049 and 0.9034 on the downside. Alternatively, above 0.9106, expect a rebound to 0.9134.
By — Don Quixote