The pair remains biased lower following yesterday’s probe and marginal close below 55SMA pivot that generated fresh bearish signal. Break lower was not sustained for now, with temporary base forming at 1.0590 zone. Subsequent bounce is seen corrective and should be capped by hourly Ichimoku cloud that lies above (cloud is spanned between 1.0628 and 1.6656), before bears resume. Initial target lies at 1.0583 (50% of 1.0339/1.0827 upleg), ahead of strong supports at 1.0550/25 (daily cloud base/Fibo 61.8% of 1.0339/1.0822 rally). Firm break above hourly cloud (cloud top is at the same level with yesterday’s high) would sideline immediate bears, in favor of stronger correction. Upper triggers lay at 1.0681 (Fibo 38.2% of 1.0827/1.0591) and 1.0708 (daily Tenkan-sen).
Res: 1.0628, 1.0640, 1.0656, 1.0681
Sup: 1.0590, 1.0550, 1.0525, 1.0509
