The cross extends lower and probes below key supports at 0.8871/60 (daily cloud base / 200SMA on Wednesday. Bearish candle with long upper shadow which was left after strong upside rejection and subsequent fall on Tuesday weighs, keeping near-term bias with bears. The single currency maintains negative near-term sentiment, with bearish setup of daily studies adding to bearish outlook, while pound resisted negative impact from Brexit plan vote down and recovered losses. Close below 200SMA (0.8860) and Fibo 61.8% of 0.8656/0.9113 (0.8830) would generate strong bearish signal for further downside. Broken 100/55SMA’s (0.8895/0.8905) should ideally cap and keep bears intact.
Res: 0.8895; 0.8905; 0.8938; 0.8955
Sup: 0.8830; 0.8810; 0.8764; 0.8696
