The pair is probing above 110.00 barrier on Thursday, on the second day of recovery from fresh multi-week low at 109.11.
Strong fall on Tuesday that dented late April’s gap did not manage to clearly fill it on first attempt, with subsequent bounce on oversold slow stochastic expected to precede fresh attempts lower.
Firm bearish setup of daily studies maintains pressure for further easing and eventual attack at key short-term support at 108.11 (17 Apr low). Corrective rallies are seen ideally capped by strong barriers provided by descending daily Tenkan-sen (110.41), 200SMA (110.46) and broken Fibo 61.8% of 108.11/114.36 rally at 110.50, before bears re-take control. Conversely, sustained break above that barrier would delay bears for extended recovery.
Today’s testimony of former FBI Director Comey is closely watched for stronger signals.
Res: 110.41, 110.46, 110.95, 111.10
Sup: 109.92, 109.73, 109.38, 109.11