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The pair is currently just above an important level between 1.4130-1.4120. A drop below , especially with confirmation from penetration of 1.4100, is likely to test 1.4050. The target and support beyond is at 1.4000.
A rise above 1.4180 indicates a move to test the downward sloping hourly trend line in the 1.4240 area. A break above indicates a long-term upward move, but will find resistance in the region of 1.4300.
Looking at the recent decline of the pair on the hourly chart, it can be seen the pullbacks (higher) have become weaker over the last several days. Selling pressure has also eased but the current trend is still down.
Containment within the area of 95.30-94.10 is quite likely. After aggressive moves higher and then back down over the last couple weeks price action contained within this range is quite probable.
If the pair does move out of the range, bias is to the downside. A break below 94.10 indicates a further slide with a target of 93.20 (not necessarily today). Support is above this at 93.80 and is expected to hold today.
A move above 95.30 is less likely. Resistance is at 95.50 and 95.80.
Yesterday the pair tested and respected an old upward sloping trend line (broken last week), quickly retreating. In early trading today it has taken another run at the trend line and the highs for yesterday but has so far failed. This makes a further slide probable.
Initial support is at 133.40 and 133.10. A break below this level indicates a move for 132.50. Further support is at 132.00.
A rise above 135 is less likely, but will initially target 135.50. Target and resistance beyond is at 136.00.
Forex Trading analysis by ForexPros - Written by Cory Mitchell
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