On the daily chart, the pair is falling along the lower Bollinger band. The price remains below its EMA130 and EMA65, both directed down. The RSI broke out its longer MA and now turned to test it from the above. The Composite also broke out its longer MA and is now turning down as well. The indicator, however, formed a divergence with the RSI and with the price suggesting the possibility of a fall in the pair.
On the 4-hour chart, the pair is trading between the lower and middle MA’s of Bollinger Bands. The price remains on the level with its EMA65 but below the EMA130, both directed horizontally. The RSI is about to test its longer MA. The Composite flattened out below its moving averages. MA’s for both indicators suggest a weakness of the market.
Support levels: 0.7094 (local lows), 0.7054 (active trade), 0.7011 (bottom MA of Bollinger Bands).
Resistance levels: 0.7125 (50% Fibonacci retracement), 0.7217 (local highs), 0.7282 (September highs).
Open short positions after the price rebound from the level of 0.7120 with the target at 0.7055 and stop-loss at 0.7153. Validity 1-2 days.
Long positions can be opened above the level of 0.7220 with the target at 0.7350 and stop-loss at 0.7185. Validity 2-3 days.