Pair’s run up to a high of 1.4782 followed by a fall back to below previous high of 1.4770, trend line (black) level and 200 day sma led to formation of bearish pinbar candle on the daily chart.
The spot has inched higher in early Europe to trade around 1.4690 and is looking to take out trend line (black) resistance.
Pair’s failure to do so if followed by a drop below 200-DMA and a subsequent move below Asian session low of 1.4642 would add credence to bearish pinbar formation and open doors for a drop to major support at 1.4540.
On the higher side, a day end closing above 1.48 is required to convince bulls about the sustainability of the current rally.