The pair eases after two-day recovery was capped by daily Tenkan-sen at 0.7590 yesterday, shifting near-term focus lower again.
Fresh weakness pressures strong support at 0.7531 (55/200 SMA Golden cross), increasing risk of renewed attempt through strong 0.7531/0.7494 support zone (defined by 200 and 100SMA’s).
Despite strong bullish signals after pullback from 0.7739 was contained by rising daily cloud, fresh weakness suggests that corrective phase is not over and keeps the downside at risk.
Mixed readings of daily chart studies show no clear direction, with break through pivots at 0.7584/0.7614 (upper) or 0.7531/0.7494 (lower) needed for stronger direction signals.
Fresh strength of the US dollar in anticipation of tomorrow’s rate hike, however, keeps near-term bias shifted lower for now.
Res: 0.7590, 0.7614, 0.7643, 0.7700
Sup: 0.7531, 0.7519, 0.7494, 0.7448
