A daily close below resistance-turned-support at 0.7184 opens the door for a test of rising support set from early September, now at 0.7064. Alternatively, a move back above the horizontal at 0.7283, marked by the November 24 swing high, paves the way for another challenge of the 38.2% at 0.7387.
The break through near-term support argues in favor of a short position but prices are too close to support to enter the trade immediately from a risk/reward perspective. Instead, we will establish an entry order to sell the pair at 0.7250. If triggered, the position will initially target 0.7184 with a stop-loss activated on a daily close above 0.7283.