© Dukascopy Bank SA
In the meantime, it might prove difficult for the pair to overcome 1.4070, and not because of the Oct 29 high, but because of the 200-period SMA in the four-hour chart. Above 1.4070 we will target the Oct high at 1.4366. In case the price dips beneath 1.3960, the first major support will be at 1.3924 (weekly S1), followed by the Oct 26 high at 1.39, but the sell-off may well extend down to 1.3835 (weekly S2 and Oct 23 low).
© Dukascopy Bank SA