The pair eases in early European trading on Tuesday after falling 30SMA (currently at 108.44) repeatedly capped advance that was accelerated on Monday on US/China ceasefire agreement.
Bulls lose traction despite Monday’s close above pivotal 20SMA barrier (108.08), as momentum remains negative on daily chart and stochastic is overbought, adding to negative signals.
Return below 20SMA would risk filling Monday’s gap that would weaken near-term structure, with break below 10SMA (107.72) needed to confirm reversal.
Only close above 30SMA would revive bulls, but sustained break above key barriers at 108.80/92 (11 June lower top/Fibo 38.2% of 112.40/106.78) is needed to confirm bullish signal.
Res: 108.44, 108.53, 108.80, 108.92
Sup: 108.08, 107.93, 107.72, 107.56
