Despite two attempts to breach 107.20 during the previous 24 hours, the strong resistance of the 55–, 100- and 200-hour SMAs and the monthly S1 was strong enough to limit any gains above this mark.
The bearish sentiment was strengthened early in this session when weaker US Dollar put downward pressure on the pair, thus resulting in a 75-pip decline within a couple of hours. The US Dollar is moving in a down-trend that is likely to dominate the market in this session, as well.
Technical indicators are likewise supportive of the bearish scenario. The rate is currently pushing towards the weekly S1 at 106.05, while the 2017/2018 low of 105.67 should be the daily low.
Given that no fundamentals are to be released today, the Greenback is unlikely to breach the psychological level of 107.00.