This pair will probably edge a little lower, perhaps to 1.0191. There is a chance the move down is reaching an end. If the rate reverses and begins rallying sharply then it may be a major move up is beginning. An initial price objective could be in the 1.05/6s where there is resistance from the 50 and 200 day MA’s and monthly pivots. Prices may even reach the 1.11s which is the 61.8% retracement of the leg down since the June highs. If there is a rally it will strengthen the case for the near completion of a bearish multi-month triangle pattern.
Analysis prepared by:
Joaquin Monfort
Forex4you analyst