On the daily chart below, we can see that the moving averages are compressed with no clear direction. That’s because we are in a rangebound market, and the uncertainty is high. The sellers couldn’t break the 1.0533 support even on the third try, which makes that level a key one in case we get there again.
For now, the buyers are in control and they are trying to rally towards the 1.08 resistance. That will be the last line of defence for the sellers. The risk sentiment in the market is tentatively positive and this has been weighing on the US Dollar, but any bad news is likely to tip the market into risk off again and favour the greenback.
On the 4 hour chart below, we can see more closely the frequent crossovers by the moving averages signalling a choppy and rangebound price action. These are the hardest markets to trade as traders can get stopped out easily.
The recent selloff caused by the Credit Suisse troubles got almost erased as buyers jumped in when initially the SNB offered support for the bank, and then extended the rally as eventually it got bought by UBS. The sentiment lately can turn on a dime.
On the 1 hour chart below, we can see that we have a clean uptrend within a rangebound market. If we get a pullback, the buyers are likely to lean on the trendline for support with one of the Fibonacci retracement levels used for confluence.
The sellers, on the other hand, are most likely to pile in in case we get the break below the trendline. If the price gets to the 1.08 handle though, the sellers are better fight aggressively as that will be the last line of defence for them.