The 200-day moving average has proven to be an excellent base in this pair and that also proved to be the case last week when the market broke below but couldn’t sustain the losses. The low was 129.10 and the 200-day comes in now at 129.70. A renewed break below the former will confirm that the downtrend is back in control. But we now have the formation of an imperfect (inverted) head and shoulders on the short-term charts which nonetheless might signal a change in sentiment. The weight of technical signals would seem to be with the bulls and if we start getting other confirmation like moving average crossovers then we may in fact be in for a significant upmove.
