Looking at the 4-hours chart, the pair traded as high as 1.2296 before it started a downside correction. There was a break below the key 1.2250 support zone and the pair remained well below the 100 simple moving average (red, 4-hours) and the 200 simple moving average (green, 4-hours).
There was a break below the 50% Fib retracement level of the upward move from the 1.2075 low to 1.2296 high. However, the decline was protected by the 1.2160 support zone.
The pair also remained stable above the 61.8% Fib retracement level of the upward move from the 1.2075 low to 1.2296 high. It is showing recovery signs, but also facing many hurdles near 1.2220 and 1.2250.
There is also a key bearish trend line forming with resistance near 1.2210 on the same chart. A clear break and close above 1.2220 and 1.2250 might start a strong recovery wave in the near term.
Conversely, could fail to continue higher and it might slide further below the 1.2160 support. The next major support is seen near the 1.2100 level.
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