On the daily chart, the pair is falling along the lower Bollinger band. The EMA130 and EMA65 remain above the price and start turning down. The RSI is approaching its most recent resistance that it failed last week. The Composite is also growing towards its longer MA. MA’s for both indicators suggest a weakness of the market.
On the 4-hour chart, the price bounced off the upper MA of Bollinger Bands that coincides with the EMA65 and is falling towards the middle MA. Both the EMA130 and EMA65 are above the price and heading down. The RSI formed a Bearish divergence with the price earlier today. The Composite has also formed a divergence. Both indicators suggest a decline in the pair, however their MA’s point out to a short term strength of the market.
Support levels: 0.6505 (EMA130 on the hourly chart), 0.6472 (active trade), 0.6438 (local lows).
Resistance levels: 0.6541 (EMA65, upper MA of Bollinger Bands on the 4-hour chart), 0.6560 (local highs), 0.6621 (61.8% Fibonacci retracement).
Short positions can be opened below the level of 0.6500 with the target at 0.6440 and stop-loss at 0.6533. Validity – 1-2 days.
Long positions can be opened above the level of 0.6621 with the target at 0.6720 and stop-loss at 0.6580. Validity – 1-2 days.