Cable moved lower on Wednesday after advance in past two days was capped by 10SMA at 1.3175. Hanging Man candlestick was left on Tuesday, signaling that bulls from 1.3038 (03 Nov low) might be running out of steam.
Plethora of barriers (MA’s / daily cloud base) lies above and weighs on near-term action, along with bearishly aligned daily studies. Near-term bias is expected to remain at the downside while these resistances cap.
Today’s fresh weakness penetrated into thick hourly cloud but break below strong 1.3100 support zone (cloud base / 100SMA) is required to confirm reversal and re-expose key near-term supports at 1.3038/26, break of which will be bearish.
Alternative scenario requires sustained break above 1.3200 resistance zone to shift near-term focus higher.
Res: 1.3175, 1.3187, 1.3214, 1.3278
Sup: 1.3125, 1.3108, 1.3096, 1.3057
