The pair falls further on Tuesday, in extension of Monday’s 0.50% loss after the dollar was hurt by weak US manufacturing data.
The latest news about US/China trade conflict further pressured the greenback.
US President Trump said today that there is no deadline in China deal which might have to wait until the US presidential election in November 2020.
Monday’s strong fall from new multi-month high (109.72) signaled that larger bulls stalled on approach to psychological 110.00 and were sidelined after the biggest daily drop since 31 Oct.
Today’s fresh extension lower cracked pivotal supports at 108.89/83 (200DMA / 61.8% of 108.27/109.72 bull-leg / daily Kijun-sen), signaling reversal and opening way for further easing as dollar’s sentiment soured after Monday’s data and today’s news.
Daily studies weakened, but momentum remains flat, warning that fresh bears might face difficulties to extend further, which would be signaled by clear break below 108.89/83 pivots.
Broken daily Tenkan-sen needs to cap consolidation and keep bears intact, with break lower to focus 108.40 (55DMA) and 108.23/27 higher base, also daily cloud top.
Res: 109.00, 109.20, 109.36, 109.60
Sup: 108.81, 108.62, 108.40, 108.23