Looking at the hourly chart, a break below that area would take the price to the lower extreme for the month of March, That extreme saw the price bottom at 1.29987 – right near the natural support at 1.3000.
On Friday, recall the price came down to test its 200 hour moving average (green line in the chart above). It found support buyers against the level and pushed back toward the high for the day before rotating back to the downside and closing between the 200 hour moving average below, and the 100 hour moving average above (blue line currently at 1.3200).
In the early Asian hours of trading today, the price tried to hold the 200 hour moving average once again, but the move to the upside was modest and the moving average eventually gave way, paving the way for buyers turned to sellers. There was a retest of the 200 hour moving average in the early European session, but sellers leaned and pushed the price back to the downside with momentum accelerating over the last 2 to 3 hours. The bearish bias was increased on the run away from the 200 hour MA.
Traders will now be eyeing the low from last week at 1.3118 as close resistance (Tuesday’s low). Stay below and the sellers remain in firm control. There might also be into resistance against the natural resistance at 1.3100. Be aware.