Short-term bullish bias
Key levels: downside: 110.10/ upside: 110.70
The pair has found some buying interests near the daily support of 109.60. However, the medium-term prospect remains pessimistic after the price broke under both moving averages which now have turned into major resistance levels.
The 4H chart confirms the prevailing bearish sentiment for the next few days. Though the RSI indicator is rising back from the over-sold territory, which would suggest that the downside pressure has been waning off, offering opportunity for a short-term rally. On the hourly chart, the latest momentum above the resistance of 110.25 is a strong indication that buyers are taking control of the price for the day.
If buyers became more aggressive, the price could rally towards 110.70. On the downside, a break below the psychological level of 110 would dent the bullish bias.