The pair holds within week-long congestion between daily Kijun-sen and Tenkan-sen but near-term bias remains on the downside on signals that corrective phase of larger downtrend from 113.70, which spiked to 104.59 on last week’s flash crash, might be over.
Daily Tenkan-sen turned south, while falling 10SMA (currently at 108.72) continues to cap and maintain bearish pressure.
Daily MA’s in full bearish setup and reversal of slow stochastic from overbought zone’s border add to negative signals, while strengthening momentum limits the downside attempts for now.
Close below broken Fibo support at 108.07 (38.2% of 113.70/104.59) which acted as solid support in past few sessions, would generate bearish signal and increase downside risk.
Alternative scenario requires Friday’s close above 10SMA and daily Kijun-sen to ease bearish pressure.
US CPI data are eyed for fresh signals.
Res: 108.51, 108.72, 109.15, 109.72
Sup: 108.07, 107.76, 107.37, 107.00
