Current price: 1.1385
Key point: 1.1420
Our preferred strategy: Sell positions below 1.1420 with a first target of 1.1355 and then a second target of 1.1315.
Alternative scenario: Stop loss and trend reversal upon breaking the 1.1440 level, targeting the 1.1500 level.
Technical commentary
The pair is moving below the 1.1420-1.1440 resistance levels, below the 200-period moving average on the hourly timeframe, and below the descending trend line from the May peak. Therefore, the price is expected to continue its decline to 1.1355 and then to 1.1315.
Reaching these levels would present a good opportunity for an upward move, as they act as strong support levels if a suitable price pattern develops.
