The pair continues to head lower following last week’s break below key med-term support at 3.5555 (23 Feb low) and break below pivot at 3.5487 (Fibo 38.2% of 2.9135/2.9414 ascend) which are signaling further extension of corrective phase from 3.9414 (11 Jan record high). Multiple bear-crosses of daily MA’s as well as Tenkan-sen/Kijun-sen lines maintain strong downside pressure, which is reinforced by completion of bearish pennant pattern. Further weakness may test psychological 3.5000 support, however, bears could be interrupted by correction on strongly oversold slow stochastic on daily chart, which is so far lacking firmer bullish signal. Falling daily Tenkan-sen offers solid barrier (currently at 1.6019) which should ideally cap and keep intact last week’s high at 3.6244 (posted after gap-lower opening).
Res: 3.5553, 3.5850, 3.6000, 3.6244
Sup: 3.5300, 3.5124, 3.5000, 3.4850
