The pair has been one to provide early hints of the latest dollar strength, alongside USD/JPY, and is now working its way lower after a bit of a bounce at the end of last week. The break under 1.0800 and 100-day moving average (red line) was called into question early this week but sellers held their nerve and are being rewarded for it:
The near-term chart this week has also been a crucial one as sellers maintained a defense at the 100-hour moving average, a level highlight earlier in the week here.
In any case, with the downside push now gathering pace with a drop to its lowest levels in two months, the pair looks poised to fall further in the sessions ahead.
All eyes are still on the dollar and overall risk sentiment, so those will remain key drivers. But all else being equal, the technicals might be suggesting an extended drop towards the March lows around 1.0516-24 potentially for the pair.
The drop below the 100-day moving average, now seen at 1.0813, also frees up room to roam towards the 200-day moving average (blue line) potentially. And that will be a key target on the way down if sellers can maintain the downside momentum in the short-term.
