Cable eases on Monday, following double rejection just under falling 20DMA (1.2185) and signaling that recovery action from new 2 ½ year low at 1.2015 (12 Aug) might be running out of steam.
Last week’s bullish close, the first after four weeks in red, was initial signal of correction.
The notion was supported by rising momentum on daily chart (though still in the negative territory), but bulls need clear break above key obstacles at 1.2185/1.2209 (20DMA / 6 Aug high) to spark further recovery.
Otherwise, risk of recovery stall and fresh weakness, which would accelerate on break below 10DMA (1.2099) would be seen as favored near-term scenario.
Bearish close today would add to negative signals.
Res: 1.2085, 1.2209, 1.2222, 1.2288
Sup: 1.2099, 1.2076, 1.2044, 1.2015