<p>On the daily chart below, we can
see that the sellers eventually managed to break the key <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> level in the 0.6850 area. This
breakout led to a deeper selloff and the sellers are now eyeing the 0.6629
level. If the sellers manage to break that level as well, then we may see the
price falling to the 0.63 handle next. </p><p>The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are clearly pointing to a bearish trend now and they will act as
resistance for the sellers along with the downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>. Right now, the price is a bit
overextended as we can see from the price being too far from the blue short
period moving average. Generally, we can see a pullback or some ranging price
action before another push in the original trend. </p><p>On the 4 hour chart below, we can
see how the price broke with strength the support zone in the 0.6850 area. What
gave the sellers the momentum were the <a target=“_blank“ href=“https://www.forexlive.com/news/sp-global-february-flash-services-pmi-505-vs-472-expected-20230221/“>US
PMIs</a> on February 21st as those are based on the month of February
and not on the month of January like the previous reports. </p><p>The market was tentative breaking
the support, because there are talks of seasonal factors skewing the data in
January, so the PMIs gave the sellers more conviction that it may be a real
change in trend and not just a blip due to seasonal factors. </p><p>On the 1 hour chart below, we can
see that the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level found sellers on the first try. We may see
another push upwards today as month-end flows are impacting the FX market since
yesterday. A break of the trendline may trigger a bigger pullback towards the
0.68 handle or even higher towards the major trendline. </p><p>A break below the 0.6698 support
should give the sellers conviction for a move towards the 0.6629 level. We will
have key economic data like the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>ISM PMIs</a> this week and beats to the
expected numbers should be bearish for the pair while misses should be bullish.
</p>
see that the sellers eventually managed to break the key <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-support-and-resistance-20220405/“>support</a> level in the 0.6850 area. This
breakout led to a deeper selloff and the sellers are now eyeing the 0.6629
level. If the sellers manage to break that level as well, then we may see the
price falling to the 0.63 handle next. </p><p>The <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-understanding-moving-averages-20220425/“>moving
averages</a> are clearly pointing to a bearish trend now and they will act as
resistance for the sellers along with the downward <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-trendlines-20220406/“>trendline</a>. Right now, the price is a bit
overextended as we can see from the price being too far from the blue short
period moving average. Generally, we can see a pullback or some ranging price
action before another push in the original trend. </p><p>On the 4 hour chart below, we can
see how the price broke with strength the support zone in the 0.6850 area. What
gave the sellers the momentum were the <a target=“_blank“ href=“https://www.forexlive.com/news/sp-global-february-flash-services-pmi-505-vs-472-expected-20230221/“>US
PMIs</a> on February 21st as those are based on the month of February
and not on the month of January like the previous reports. </p><p>The market was tentative breaking
the support, because there are talks of seasonal factors skewing the data in
January, so the PMIs gave the sellers more conviction that it may be a real
change in trend and not just a blip due to seasonal factors. </p><p>On the 1 hour chart below, we can
see that the 38.2% <a target=“_blank“ href=“https://www.forexlive.com/Education/technical-analysis-using-fibonacci-retracements-20220421/“>Fibonacci
retracement</a> level found sellers on the first try. We may see
another push upwards today as month-end flows are impacting the FX market since
yesterday. A break of the trendline may trigger a bigger pullback towards the
0.68 handle or even higher towards the major trendline. </p><p>A break below the 0.6698 support
should give the sellers conviction for a move towards the 0.6629 level. We will
have key economic data like the <a target=“_blank“ href=“https://www.forexlive.com/EconomicCalendar“>ISM PMIs</a> this week and beats to the
expected numbers should be bearish for the pair while misses should be bullish.
</p>
This article was written by ForexLive at www.forexlive.com.