Technical analysis
The price is beneath MA(55)
The MACD signal line is below 0, with the start of pointing up
The RSI is below 30, indicating a downtrend.
What the possible outcomes are
The U.S. dollar hit a two-months high last night on the Fed’s hawkish speech. The pair fell and broke to 1.2000. Now, it consolidates at 1.19950. The price is under MA(55), and the technical outlook favours the downside. The signal line of MACD is below 0, pointing up. The pair tend to sink under bearish pressure, but the downtrend movement gradually disappears from the Asian market.
The bears are likely to break the support level at 1.19816. Then the pair will move towards 1.19388.
Contrarily, the bulls may gain strength, and the price may rise to the 1.20517 resistance level. A breakout of that level can push the price higher towards 1.21297.
The current increased volatility may lead the prices either way in the upcoming trading sessions until the market settles in a particular direction.
Key levels
Support 1.19816 1.19388
Resistance 1.20517 1.21297
