The cross continues to move gradually lower after eventually breaking below the floor of month-long congestion and hit new low at 0.8550 (the lowest since 7 May).
Strong bearish setup on daily/weekly chart studies signals further weakness, with strong supports at 0.8490/70 zone (Mar/May lows/monthly cloud top) coming in focus.
The Euro showed mild reaction on stronger than expected German GDP data while negative impact on pound on downbeat UK retail sales was limited.
Barriers at 0.8597/0.8611 (falling 10/20DMA’s) are expected to cap stronger upticks and keep bears intact.
Only firm break above recent range top (0.8675) reinforced by falling 30DMA, would question bears and signal correction.
Res: 0.8581; 0.8597; 0.8611; 0.8675
Sup: 0.8550; 0.8489; 0.8470; 0.8395
