<p>On the daily chart below, we can
see that after the break of the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>, the price is having a hard time
breaking lower as the strong <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at 0.6860 halted the selling
momentum. </p><p>The bearish bias remains though
as we have the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> pointing south. The USD is supported fundamentally as the market is
repricing a higher terminal rate from the Fed and no cuts for this year. This
repricing started with the very strong <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP</a> report and hot economic reports
afterwards. The market is probably just waiting for some catalyst before
pushing lower. </p><p>On the 4 hour chart below, we can
see that the selling momentum waned as the price tried a breakout of the
support at 0.6860 as depicted by the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>divergence</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a>. It’s possible that we will see
first a pullback to the downward trendline before another attempt from the
sellers to break the support. </p><p>The buyers will need first to
break the trendline to the upside to start targeting higher highs and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at the 0.70 handle, which will
be the key spot for both sides.</p><p>On the 1 hour chart below, we can
see that there’s <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with a 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level at the trendline. That may be a target for
the buyers and a good spot to lean on for the sellers as they will have a
defined risk and can fold fast if the price starts breaking the trendline to
the upside. </p>
see that after the break of the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>, the price is having a hard time
breaking lower as the strong <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> at 0.6860 halted the selling
momentum. </p><p>The bearish bias remains though
as we have the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> pointing south. The USD is supported fundamentally as the market is
repricing a higher terminal rate from the Fed and no cuts for this year. This
repricing started with the very strong <a target=“_blank“ href=“https://www.forexlive.com/news/us-nonfarm-payroll-517k-vs-185k-estimate-unemployment-rate-34-vs-35-estimate-20230203/“>NFP</a> report and hot economic reports
afterwards. The market is probably just waiting for some catalyst before
pushing lower. </p><p>On the 4 hour chart below, we can
see that the selling momentum waned as the price tried a breakout of the
support at 0.6860 as depicted by the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-divergence-20220429/“>divergence</a> with the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-macd-20220427/“>MACD</a>. It’s possible that we will see
first a pullback to the downward trendline before another attempt from the
sellers to break the support. </p><p>The buyers will need first to
break the trendline to the upside to start targeting higher highs and the <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>resistance</a> at the 0.70 handle, which will
be the key spot for both sides.</p><p>On the 1 hour chart below, we can
see that there’s <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-confluence-20220318/“>confluence</a> with a 61.8% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level at the trendline. That may be a target for
the buyers and a good spot to lean on for the sellers as they will have a
defined risk and can fold fast if the price starts breaking the trendline to
the upside. </p>
This article was written by ForexLive at www.forexlive.com.