Posted on February 4, 2015 by the XM Investment Research Desk at 8:32 am GMT
A break below the 4 year low of 0.7175 would target the next psychological level of 0.7000.
The long term bias is bearish, as prices have been steadily declining in a channel from the July 2014 peak of 0.8835. As long as the market remains below the Ichimoku cloud the outlook is bearish. The RSI is in bearish territory below 50 but is currently pointing north as the pair corrected higher. Meanwhile, 0.7800 is a key level so a move above this would weaken the downside bias.