Bears are taking a breather and consolidating within narrow range in early Thursday’s trading, following three-day fall after upside rejection at 1.1215 and failure to close above falling 30SMA.
Bearish momentum continues to strengthen on daily chart, with converged 5/10SMA’s attempting to form bear-cross maintain negative technical outlook.
Weak pound on Brexit fears, strengthening dollar and concerns over global trade slowing, also weigh.
Bears eye base at 1.1111/07, break of which would trigger stops parked below and spark stronger bearish acceleration towards psychological 1.10 support.
Meanwhile, the pair may hold in consolidation as bears face headwinds from bids at 1.11 zone, but upside attempts are expected to be limited and ideally capped by converged 5/10SMA (1.1163), which guard converging 20/30 SMA’s (1.1182/85).
Only break above 1.1215 (recovery high posted on Monday) would neutralize bearish bias and signal stronger recovery.
Res: 1.1143, 1.1163, 1.1185, 1.1215
Sup: 1.1124, 1.1111, 1.1107, 1.1020
