“¢ The cross staged a solid rebound from 1-1/2 month lows, albeit seemed struggling to build on the positive momentum further beyond 100-hour SMA.
“¢ Meanwhile, the formation of a continuation pattern – rectangle, on the 1-hourly chart indicates a consolidation phase/a brief pause in the trend, bearish in this case.
“¢ Moreover, technical indicators on the mentioned chart have also started gaining some negative momentum and further points to the resumption of the prior bearish trend.
“¢ However, it would be prudent to wait for a convincing break through the trading range before traders start positioning for the pair’s next leg of directional move.
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Spot Rate: 0.8903
Daily Low: 0.8871
Trend: Bearish
Resistance
R1: 0.8916 (R2 daily pivot-point)
R2: 0.8936 (50-day SMA)
R3: 0.8957 (last week’s swing high)
Support
S1: 0.8871 (current day swing low)
S2: 0.8856 (S2 daily pivot-point)
S3: 0.8837 (200-day SMA)
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