The weekly chart shows that technical indicators maintain a strong bearish momentum in extreme oversold levels, which suggest there’s still room for further gains in correction mode, but are in no way confirming a bottom. In the daily chart, indicators have bounced from extreme oversold readings but remain deep in the red, whilst moving averages maintain their bearish slope well above current price, being the shortest, and the closest, 20 SMA around 1.1520. Price has been consolidating for most of these last days in a quite tight range, but as long as capped below 1.1440, 61.8% retracement of the above mentioned rally, the upside will likely remain limited. It will take some steady follow through above the mentioned 1.1520 to see the corrective movement extending over the upcoming days, eyeing tops early January lows in the 1.1750 price zone.
The immediate support comes at 1.1200, as if the level gives up, so will bulls and stops will likely get triggered, anticipating a retest of the multiyear low, in route to the critical 1.1000 figure.
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