The EU approved a 7.2 billion-euro bridge loan to Greece. The pair lost more than 2% during the previous week after 2 consecutive weeks of gaining.
Given the lack of macroeconomic data, it is understandably a quiet day on the markets. Things should pick up rapidly on Friday however as we don't have a number of high-impact data releases to look forward.
The pair closed below 20Wsma. It made a large distribution between 1.1467 and 1.1437. In the daily chart, the pair lost all moving averages. The parallel support is found at 1.0819, which is a previous swing low, and 1.0790. We have been advising to sell on rises at 1.0720. The 20Wsma is seen at 1.1080. The oscillators indicate oversold markets in different time intervals on the hourly and daily charts.
The pair has been moving towards lower lows and lower tops, falling below the lower end of the ascending trendline. The nearest support zone is found between 1.0820 and 1.0790. We recommend fresh selling only below 1.0780 with a target at 1.0720. Later, it is likely to extend towards 1.0630.
Intraday resistance is seen at 1.0860, 1.0880, and 1.0910. Support is found at 1.0820 and 1.0790.