The pair eases on Thursday after limited recovery was capped by falling 5SMA as threats of deepening trade conflict continue to fuel safe-haven buying and support yen.
The near-term action holds within 107.80/108.50 zone, held by huge option expiries today, but risk remains at the downside on dominating trade worries and bearish daily studies.
Eventual close below 108 handle, following several failure in past few sessions, would generate initial bearish signal for attack at key Fibo support at 107.57 (Fibo 61.8% of 104.59/112.40), loss of which would risk stronger bearish acceleration.
Highs of today / Thursday (108.46/48) mark immediate resistance, but lift above falling 10SMA (108.84) is needed to neutralize downside risk and open way for further recovery.
Today’s ECB policy meeting and Friday’s US jobs data release are key events which are expected to generate stronger direction signals.
Res: 108.48, 108.84, 109.02, 109.15
Sup: 108.07, 107.81, 107.57, 107.00
