A pullback was formed after encountering the daily short-term trend (1.1890) yesterday, which brought the pair back to the minimum extreme (1.1806). The recovery of the daily downward trend and the continuation of the decline will open up opportunities for the bears to test the subsequent support levels of 1.1704 - 1.1695 (minimum + monthly Fibo Kijun) and to fulfill the target for the breakdown of the daily cloud (1.1619 - 1.1684).
The bulls failed to stay above the key levels the day before and as a result, the main advantage in the smaller time frames is on the bears' side again. The key levels today form the most important resistance zone, which is currently set at 1.1841-52 (central pivot level + weekly long-term trend). A consolidation above can change the balance of forces acting on the H1 chart. In this case, the intraday pivot points will be the resistances of the classic pivot levels (1.1876 - 1.1929 - 1.1964). If the current correctional pause ends with an update of the low, the interests of the bears will be directed on conquering the supports of the classic pivot levels. It can be noted at 1.1788 - 1.1753 - 1.1700 today.
The testing of the encountered resistances did not bring positive results for bullish traders. They were rejected, and the area of 1.3835-50, combining the daily short-term trend and the weekly medium-term trend, remained unconquered. In the current situation, consolidation or another test of the failed resistances is possible. In order for the bears to identify any long-term prospects, which can include, for example, the target for breaking the daily Ichimoku cloud (1.3636-1.3698), as well as the monthly short-term trend (1.3551), they should break through the nearest supports located at 1.3754-31 (minimum extreme + weekly Fibo Kijun).
The scales swung again towards the direction of the bears in the smaller time frames. Yesterday, they declined to the key levels, and now, they are performing their retest. If bearish traders retain their position and advantage, we can note the pivot points for further decline at 1.3746 - 1.3697 - 1.3621 (classic pivot levels).
In turn, if the pair regains possession of the key levels, which are currently at 1.3815-22 (central pivot level + weekly long-term trend), then bullish traders will most likely continue testing the resistances (1.3835-50) in the bigger time frames. The next intraday upward prospects will be the resistances of the classic pivot levels (1.3871 - 1.3947 - 1.3996).
Ichimoku Kinko Hyo (9.26.52) and Kijun-sen levels in the higher time frames, as well as classic Pivot Points and Moving Average (120) on the H1 chart, are used in the technical analysis of the trading instruments.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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