The pair recently retested the breached neckline for a bearish pattern explained in previous reports provided on the daily chart above. After the retest, the pair declined as expected though currently reached the 38.2% correction for the entire upside wave that started from 0.4885 till 0.7634; supporting the strength of this level is the oversold signals on momentum indicators.
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Therefore, we expect intraday volatility and fluctuations among 0.6695 and 0.6575 in an attempt to gain enough bearish momentum to continue the downside correction which started with the breach of the support for the medium term bullishness on November 26.
The downside targets start mainly from 0.6260 followed by fluctuation to retest the support for the current downside move which is expected to be breached at 0.6525 followed by resumption to the downside wave towards the full technical targets around 0.5935 61.8% correction for the aforesaid upside wave-.
The 100 Days MA supports and protects the downside move, though breaching 0.6830 might lead the pair higher towards the channel’s resistance at 0.7045.