Today there is real possibility that we might see a cross down of the 50 and 200 sma. The last time this happened was back in November 2015, when the pair plummeted down, crossing below 100, as the price at the time of the cross was around 120.
It is possible that the pair will continue its fall, after it made a forth lower high and the price was not able to break up above the strong horizontal resistance around the zone of 114.300/115.100. Now the price sits at a horizontal support at 111.6 and if we see a break below here, this will increase the chances of quicker move to the down side.
Fundamentally, the USD remains weak and its being sold against all currencies and this tendency might proof right in the short term. This is in back of two rate hikes already and expectations of more increases of the base rate but in 2018.
Trader - S. Fuchedzhiev
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