With a strong sell off underway, risk of further decline is envisaged towards the 0.8230 level, its Jan 09 2014 low. Further down, support comes in at the 0.8200 level, its psycho level where a breach will pave the way for a run at the 0.8150 level.
A clearance of here will turn attention to the 0.8100 level, its psycho level. Its daily RSI is bearish and pointing lower supporting this view. Conversely, in case of a recovery resistance resides at the 0.8285 level, its Jan 15 2014 level followed by the 0.8348 level.
Above here if seen will resume the cross’s recovery towards the 0.8400 level and then the 0.8466 level. All in all, the cross remains biased to the downside in the medium term.
Guest post by FX Tech Strategy
