The pair hit a low of 1.0927 in trading yesterday before bouncing back to keep a daily close above the 1.1000 handle. As the dollar firms once again today, the pair is seeing a move back lower below the figure level to session lows of 1.0986 currently.
So far, sellers are showing that they are looking to hold their ground by keeping price under the 100-hour MA (red line). That suggests the near-term bias in the pair remains more neutral as we look towards testing daily support around the 38.2 retracement level @ 1.0962.
The key test though for any further downside pressures will be the 200-hour MA (blue line), which rests closer to the 1.0900 handle. A break below that will open up further downside momentum in the pair towards testing 1.0800 next.
The risk for sellers at this stage is a run back above the 100-hour MA @ 1.1034, with the daily moving averages seen at 1.1048 and 1.1076 respectively. Those will offer areas to lean on for sellers in case we do see a turnaround in sentiment in the coming sessions.
Otherwise, keep below the 100-hour MA and 1.1000 and there is reason for sellers to keep the pressure on amid the softer risk mood today while the dollar goes in search for an extended rebound after last week's decline.