Much like AUD/USD, there is a relatively mild bounce in the pair today but it doesn't take away from the notable technical development that we saw yesterday. The pair not only broke back below both its 100 (red line) and 200-day (blue line) moving averages but also took out the 38.2 Fib retracement level of its swing higher since October, seen at 0.6145.
The latter helped to arrest the declines at the end of February but now with those key levels out of the way, sellers are in control and are looking poised to try to establish a further downside leg in the pair.
The next key area of support will come from the 0.6000 mark alongside the 50.0 Fib retracement level at 0.6025.
It's now all about dollar sentiment and as highlighted with other dollar pairs earlier, a lot will rest on the upcoming landmines before the FOMC policy meeting decision on 22 March. And we won't have to wait long as there will be the US ADP employment report later today, which will act as a teaser for the US non-farm payrolls on Friday.
