The pair extends weakness after more dovish than expected Fed and eventually broke out of multi-day congestion.
Fresh bearish signal was generated on break below 20SMA (109.00) today, with further easing through 108.72 (Fibo 23.6% of 104.59/109.99 upleg) maintaining negative near-term outlook.
Daily MA’s are now in full bearish setup and south-heading momentum cracks the border of negative territory, adding to negative signals.
Bears could extend towards 108.00 (daily Kijun-sen) and 107.93 (Fibo 38.2% of 104.59/109.99), violation of which would generate strong bearish signal.
Caution on oversold slow stochastic which could slow bears.
Broken 20SMA marks solid resistance at 109.00, followed by converging 10/30 SMA’s (109.38/47), break above which is needed to neutralize bears.
Res: 109.00, 109.38, 109.47, 109.74
Sup: 108.00, 107.93, 107.76, 107.29
