The pair has bounced from the 1.35900 support level late last week and RSI has picked up.
However the pair still remains in the confines of a broader down trend. The expectation is for further gains at the start of the week which could see a retest towards 1.36730 resistance. Ultimately if we get this move we would expect it to be capped around his level or to reverse back from the falling 20 day SMA.
Ultimately however, with key event risk this week we see the potential for the pair to break lower and end the week down. 1.3482 provides the first target in the event that we see a break down in the pair.
However the pair still remains in the confines of a broader down trend. The expectation is for further gains at the start of the week which could see a retest towards 1.36730 resistance. Ultimately if we get this move we would expect it to be capped around his level or to reverse back from the falling 20 day SMA.
Ultimately however, with key event risk this week we see the potential for the pair to break lower and end the week down. 1.3482 provides the first target in the event that we see a break down in the pair.