As shown on the daily chart below, the decline from 1.3710 faces strong support around 1.2900 levels, so far the pair is lifted by the support line that comes from 1.3171/1.3139 levels around 1.2970, added to that we have the daily 200 SMA around 1.2925 levels.

Let’s take a deeper look to the daily chart once again, since the beginning of March, the pair is trapped between the daily 100 SMA and the daily 200 SMA, both SMAs are positive and still sloping upward strongly, anyway, sideways move between 1.3150/1.2950 will be seen before the next move.

If we check the daily RSI, It suggests possible rebound, especially If RSI could push back above the 50 levels, that means a daily close above 1.3161 levels, If seen price action may push the pair back to 1.3318/1.3435 levels, where a breach will turn focus on the 1.3520 levels, above 1.3520 will target 1.3710 levels, but in return a rejection from 1.3318/1.3435 levels may bring rebound to the 1.3000 levels once again.

On the downside, sustained break below 1.2900 levels is indeed to suggest possible reversal, If seen, any pullback to the upside most likely will be limited by 1.3000/1.2900 levels before falling to 1.2660 levels and possible lower.

On the 4 hour chart, the pair is bearish but It loses its momentum, so rebound is suggested before the next fall, resistance at 1.3135 levels, support at 1.2955… 

Best Regards

Haitham