The pair continues to consolidate near its 200 moving average after the impressive decline from the previous days. The market has made an attempt below parity but closed above this level.
We might see some consolidation going forward considering the over-extended bearish move. A break above 1,0420 (4-hour bollinger band) would expose further gains towards 1,06 (daily 20 moving average coinciding with the 50 and 100 MA).
We think that a major reversal might be in place and we will keep a close eye on the coming develpments and particularly the weekly close which is always important.