In our previous report, we maintained a neutral stance due to conflicting market signals. However, a clear bearish development has since occurred, as the support level at 1.3760 was broken, potentially triggered by early-session momentum at 1.3720. The pair has since recorded its lowest level of the session at 1.3729.
Technical Outlook:
Current technical signals point to a possible continuation of the downtrend. The price remains under pressure from the 50-period Simple Moving Average (SMA), which now acts as dynamic resistance above the broken trendline—further reinforcing the bearish bias.
Probable Scenario:
As long as the pair continues to trade below 1.3770—and more broadly below the key resistance at 1.3800—the downtrend remains the favored scenario. Downside targets include 1.3720 and 1.3695, with a break below the latter opening the path toward 1.3660.
Warning:
In light of ongoing geopolitical tensions and uncertain macroeconomic conditions, the market remains highly volatile. Multiple scenarios may unfold, and price action could shift rapidly. Caution and disciplined risk management are strongly advised.
Risk Disclaimer: Amid global economic uncertainties and trade tensions, risk levels remain high. Traders should proceed with caution and be prepared for a range of market scenarios.
S1: |