With the dollar keeping firmer in the past few sessions, that has called into question the recent momentum in cable in chasing a move towards 1.4000.
The break back below the 100-hour moving average (red line) yesterday was a dent in the upside bias but now we're getting to a more serious test of buyers' resolve as we look towards European morning trade today.
The low yesterday hit 1.3830 before bouncing back up to 1.3877. That came after a bounce from the 200-hour moving average (blue line) while the topside was limited by the 100-hour moving average at the time.
The former now sits @ 1.3839 and remains a key level to watch as sellers try to seize near-term control as the battle ensues between the key hourly moving averages.
Essentially, cable is caught in a tug of war between buyers and sellers in search of near-term control at the moment. Break above the 100-hour moving average and buyers have a more firm bias to chase a move back above 1.3900.
However, break below the 200-hour moving average and sellers could gain momentum to chase a further retracement towards 1.3800 and the 12 February lows @ 1.3776-78.
A lot still depends on dollar sentiment, which is seemingly not revealing too much today as the reflation trade encounters a pause.
As such, the bond market will continue to be a key spot to watch in case it starts to trigger more indirect moves across other assets ahead of the weekend.