traded lower yesterday after hitting resistance at 1.0612. But, the pullback was short-lived near the 1.0565 level.
Overall, the pair keeps making higher highs and higher lows above the upside support line taken from the low of Sept. 23. So, the short-term outlook is positive.
If the bulls are strong enough to jump back into the action from above the upside line, we would expect them to target 1.0612 again.
If they break through it, we could see the price climb towards 1.0660, marked by the high of July 15.
Another break, above 1.0660, could extend the trend towards the 1.0695 zone, marked by the inside swing low of July 12.
Shifting attention to our short-term oscillators, we see that the RSI fell below its 70 line yesterday, but today, it ticked up from slightly above 50.
The MACD lies within its positive territory but below its trigger line. Both indicators detect slowing upside speed.
But, the RSI turned up again, suggesting that the rate could gain momentum.
To start examining whether the short-term outlook has changed to negative, we would like to see an apparent dip below 1.0525.
This could confirm the break below the upside line and pave the way towards 1.0487, which provided resistance on Sept. 30 and Oct. 4.
If the slide does not end there, we could experience extensions towards the 1.0433/40 zone, marked by the lows of Oct. 5 and 6.