On the daily chart below, we can see that after the break of the trendline, the price is having a hard time breaking lower as the strong support at 0.6860 halted the selling momentum.
The bearish bias remains though as we have the moving averages pointing south. The USD is supported fundamentally as the market is repricing a higher terminal rate from the Fed and no cuts for this year. This repricing started with the very strong NFP report and hot economic reports afterwards. The market is probably just waiting for some catalyst before pushing lower.
On the 4 hour chart below, we can see that the selling momentum waned as the price tried a breakout of the support at 0.6860 as depicted by the divergence with the MACD. It’s possible that we will see first a pullback to the downward trendline before another attempt from the sellers to break the support.
The buyers will need first to break the trendline to the upside to start targeting higher highs and the resistance at the 0.70 handle, which will be the key spot for both sides.
On the 1 hour chart below, we can see that there’s confluence with a 61.8% Fibonacci retracement level at the trendline. That may be a target for the buyers and a good spot to lean on for the sellers as they will have a defined risk and can fold fast if the price starts breaking the trendline to the upside.
