The sideways consolidation of the last few days looks like it could now breakdown as the exchange rate thrusts lower. If it falls below the 0.9114 lows then it will probably fall to support and resistance at 0.9065 first and then the 0.9015-25 range where the weekly and monthly pivots lie. Despite the indicators looking bearish it is also possible the pair could rally from the current lows back up to the top of the range at 0.9230, although given the strength of the move down this is less likely.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst