The pair sustains a break above the 200-hour moving average for the first time since mid-April
And the last time that happened, the pair was trading above 0.7300 prior to a break below and move towards the lows this year. With the break of the 200-hour MA (blue line), buyers have successfully now re-established a near-term bullish bias back in the pair and that is a strong signal that we could just yet have found a bottom in the pair for the time being.
The lows this year touched near 0.6850 and now with the break of the 200-hour MA, the pair looks set to at least retrace the downside move over the last month. The next key level to look out for in terms of resistance will be 0.6980, followed by offers at 0.7000 and further resistance in the form of the 61.8 retracement level @ 0.7032.
Meanwhile, to the downside bids are seen around 0.6900-10 with support from the 100 and 200-hour MAs also in the region followed by further support at 0.6875 and 0.6850.
While the pair isn't going to shoot back up to 0.7300 overnight, the move overnight and so far today gives a strong suggestion that the recent downtrend may have bottomed.
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