According to Fan Yang, Chief Technical Strategist at FXTimes: “The 1H chart shows the momentum remaining bullish with the RSI above 40, however a bit of a lost in momentum reflected by the bearish divergence. 4H chart does not even show bullish momentum, but the RSI did remain above 40, and being above 60 reflects bullish bias. If the market breaks above the current target of 1.3860, we can see the RSI reach above 70 for a bullish momentum breakout signal”.
“The daily chart shows the immediate target above 1.3860 is 1.3980, 78.6% retracement level, and a declining trendline, which might actually be lower, close to the 1.39 level, so anticipate resistance at this level as well. Above this 1.40 area, 1.4280 is our next target (Nov. 2010 high). For the bearish scenario, a decline back towards 1.3550 can be expected if the market breaks below 1.37, but a more significant bearish scenario only opens up below 1.34”.