The pair remains at the back foot on Monday, following strong fall on Thu/Fri, but so far holding above Friday’s low at 0.7421, which also marks 50% retracement of 0.7328/0.7517 recovery leg.
Support is reinforced by 20SMA.
Bearish setup of daily studies maintains downside risk with firm break below 20SMA to trigger fresh extension lower and expose next pivotal support at 0.7400 (Fibo 61.8% of 0.7328/0.7517).
Converged daily Tenkan-sen / Kijun-sen lines at 0.7452/56 are in bearish setup and expected to keep the upside protected.
Meantime, extended consolidation is seen as likely scenario on holiday-thinned markets.
Alternative scenario requires break above Kijun-sen line and Fibo barrier at 0.7480, to signal reversal.
Release of building approvals data from Australia early on Tuesday may generate stronger signal.
Res: 0.7456, 0.7480, 0.7500, 0.7517
Sup: 0.7421, 0.7400, 0.7388, 0.7373
