On the daily chart, the pair is falling from the upper MA of Bollinger Bands to the middle MA of the indicator. The price remains between the EMA65 and EMA130, both directed horizontally. The RSI bounced off the border of the overbought zone and falling towards its beginning of the month support and longer MA. The Composite is forming a divergence with the RSI suggesting a rebound is possible.
On the 4-hour chart, the pair is falling along the lower MA of Bollinger Bands. The price remains on the level with the EMA130, which is directed horizontally but below the EMA65 that start turning down. The RSI is about to test its most recent support in the oversold zone. The Composite is testing its longer MA suggesting an upward correction is possible.
Support levels: 3.1610 (local lows), 3.1360 (active trade), 3.1040 (beginning of December lows).
Resistance levels: 3.2086 (61.8% Fibonacci retracement), 3.2364 (local highs), 3.2606 (50% retracement).
Short positions can be opened from the level of 3.1518 with the target at 3.1125 and stop-loss at 3.1680. Validity – 1-2 days.
Long positions can be opened above the level of 3.2086 with the target at 3.2355 and stop-loss at 3.1990. Validity – 1-2 days.