The pair remains at the back foot in early Wednesday’s trading and returned below 111.00 handle after recovery attempts stalled at 111.22.
Tuesday’s long red daily candle weighs on market, along with political uncertainty that prompted investors into safe haven assets.
Bearish setup of daily studies keeps the downside at risk, with focus on 110.50 (Fibo 61.8% of 108.11/114.36 rally) and key support at 110.23 (18 May low, reinforced by rising 200SMA.
Close below 110.50 is needed for bearish signal, while break below 110.23 would open another pivotal support at 110.00 (psychological support/daily cloud base).
Solid resistance at 111.34 (converged 10/55SMA’s) should cap upside attempts and keep intact upper pivots at 111.80 (daily cloud top) and 112.12 (24 May recovery rejection).
Res: 111.34; 111.46; 111.80; 112.12
Sup: 110.66; 110.50; 110.23; 110.00
