Cable eased below 1.2900 in early Friday’s trading after upside attempts in past two days were repeatedly capped by 20SMA at 1.2920. Negative near-term signals are developing on formation of multiple bear-crosses (10/20 and 10/30 SMA’s) as well as daily Tenkan-sen/Kijun-sen, which may trigger further weakness. Firm break below cracked initial support at 1.2862 (Fibo 38.2% of 1.2768/1.2920 recovery leg) would open way for further downside and expose next pivotal support at 1.2829 (Thursday’s low/near Fibo 61.8%) and risk return to 1.2770 higher base. Alternative scenario requires sustained break above 1.2920 pivot to turn near-term bias higher. US Jobs data are in focus for firmer direction signals.
Res: 1.2900, 1.2920, 1.2941, 1.2981
Sup: 1.2855, 1.2829, 1.2800, 1.2768
