Yesterday there was a day of respite for the pair, then the minimum of 1.5345 could recover from the downward pressure. If you look at the chart, right in this zone is the 50-day moving average (red). It acts as dynamic support, which is located at 1.5384. We should wait for a close below this level on 4-hour charts the pair resumes its downward sequence. The fact that it is now above 1.54 increases the likelihood of a pullback towards 1.5512 resistance. Given that this pair has fallen at least to the level of 1.50, as it is already known that the Fed’s program of quantitative easing will be reduced in the short term, and this will continue to weigh on the market, which in turn could fall more. Therefore, we recommend selling below 1.5484 or if there is a pullback towards the 1.55 area where you can re-sell the pair.
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