The pair fell to two-week low at 110.75 in early Monday’s trading, extending last Thu/Fri strong weakness, sparked by President Trump’s criticism of high dollar Fed’s tightening. Trump’s messages over the weekend, when he criticized the Fed and global monetary policy, as well as accusing the European Union and China of manipulating their currencies, put the greenback under fresh pressure. Extension of last week’s strong fall broke below pivotal supports at 111.38/30 (Fibo 61.8% / 20SMA) and stretched below 76.4% of 110.27/113.17 bull-leg. Near-term focus turns towards key supports at 110.10 (200SMA), 110.00 (psychological) and 109.90 (daily cloud top), but oversold conditions signal bears may take a breather before attack. Broken 20SMA marks initial resistance, with extended upticks expected to hold below 112.00 (broken daily Tenkan-sen / 10SMA) to keep bears in play. Close below 110.38/30 would generate fresh bearish signal and risk further weakness, as techs are bearish and near-term sentiment remains negative.
Res: 111.30, 111.72, 112.07, 112.62
Sup: 110.75, 110.42, 110.10, 109.90
