Adding to the bearish vibe, both monthly and daily timeframes are trending south. The daily chart also recently printed a Death Cross (the 50-day SMA crossing under the 200-day SMA), communicating the potential for a longer-term downtrend.
Shorter-term flow on the H1 timeframe concluded Friday testing resistance at $1.07 after challenging the lower limits of a neighbouring support and resistance zone at $1.0680-$1.0690. South of here, attention is on supports from $1.0632, $1.0648 and $1.0664.
Given the higher timeframe direction, which is eyeing lower prices at the moment, short-term traders are likely watching to sell rallies from resistance. This will be particularly true if euro area inflation comes in softer than expected this week. Thus, the $1.07 region stands out as potential resistance to be aware of. Should sellers continue to defend the big figure in early trading and price clears remaining bids from $1.0680-$1.0690, the above-noted support levels on the H1 scale could be targeted.
