The market has been moving inside the descending yellow channel for a long time. During the previous trading week, we saw a price increase from the lower bound of this channel to its upper wall, then there was a rebound, and the price began to decline.
Now the market is near the red line of the moving average. If it is broken below, the bears may open the way to the support level of 1.296, which is on the lower wall of the yellow channel.
However, in the case of arebound from this line, the market may rise to the upper yellow wall and the resistance level of 1.325. Thus, in the current situation, it is very important to track how the price will behave near the support level of 1.321, which forms the moving average.