On the daily chart, the pair continued to decline, reaching a new low below the "round" level of 0.7100. The pair remains below the trend line. But the fact that the pair remained above the "round" level of 0.7100 (near the August minimum) increases the probability of a rebound, especially if the pair grows on Wednesday, then it would be a close above the trend line. A new bullish divergence of the lows of the pair and the MACD histogram has formed, which can strengthen the support by 0.7100, and if the trend line is overcome, this signal can confirm the divergence signal. Based on this, the probability of a rebound is now high. Another factor is the very large size of the wave of decline since the beginning of November - about 500 points. According to directional movement indicators, the downward trend is strong: the excess of DM- over DM+ is very large, ADX is at a high level, the MACD histogram remains in the negative zone, the MACD line has a negative slope.
A reversal may occur on a four-hour chart. In addition to the pair's rebound from the "round" level of 0.7100, the pair overcame the trend line and now it already acts as support for a pullback. The pair also overcame relative highs on November 26-30 at 0.7150. If the pair anchors above 0.7150 and thus above the trend line, this would make the continuation of the upward rebound preferable. According to the directional movement indicators, the correction to decrease: the excess of DM- over DM+ remains, but the MACD histogram is already in the positive zone, the MACD line has received a positive slope.
Resistance levels: 0.7150; 0.7200
Support level: 0.7100