The rally that started from 1.3834 at the end of February stopped at 1.4513 last week. There was a sharp pullback on Monday to test the 50-day moving average which acted as support but prices have dipped below it in early Tuesday trading. There is scope to reach the key 1.4300 level. The 50-day moving average now turned into resistance at 1.4365.
A break below the 1.4300 support level would indicate that a short-term top is in place at 1.4513 and this weakens the short-term bullish outlook from the end of February.
Near term upside momentum appears to have weakened as indicated by the RSI which has fallen and is close to 50.
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