On the daily chart, the pair is correcting down as it broke out the upper MA of Bollinger Bands earlier. The price remains above its moving averages that turned up. The RSI failed the border of the overbought zone and falling. The Composite failed its strong resistance it cannot overcome since November and falling as well.
On the 4-hour chart, the pair is trading just above the middle MA of Bollinger Bands. The price remains above its moving averages that are directed up. The RSI is testing its longer MA, while the Composite broke down its MA’s and turned sideways. MA’s for both indicators suggest some weakness of the market.
Support levels: 1.1064 (local lows), 1.0992 (EMA130, December highs), 1.0912 (active trade, upper border of a descending channel).
Resistance levels: 1.1246 (local highs), 1.1287 (active trade), 1.1351 (November highs).
Short positions can be opened from the level of 1.1060 with the target at 1.0992 and stop-loss at 1.1101. Validity – 1-2 days.
Long positions can be opened from the level of 1.1251 with the target at 1.1341 and stop-loss at 1.1209. Validity – 1-2 days.