The RSI indicator is mirroring the latest upside correction in the price, while the MACD is also reflecting some improvement in buying interest, advancing above its trigger line and trying to surpass the zero level.
A decisive close above the nearby resistance of 1.4000 could boost buying pressure towards the 35-month peak of 1.4238. Stretching further up, the bulls may next haunt the 1.4345 barrier, taken from the top on January 2018.
In the event of a downside move the 20- and 200-day SMAs, which are currently near 1.3813 and 1.3740 respectively, may ease selling forces. Failure to bounce here, could bring the 23.6% Fibonacci retracement level of the up leg from 1.1405 to 1.4238 at 1.3577 into view ahead of the 1.3435 line.
In the bigger picture, the market has been trading within a consolidation area since February. A drop below the 1.3577 support would disturb this sideways trajectory, shifting the outlook to bearish.
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