Cable is standing at the front foot in European trading on Friday after Thursday’s action ended in Doji candle and signaling that four-day fall might be running out of steam. The lower 20-d Bollinger band contained fall and fresh upside attempts eye pivotal barriers at 1.2414 (30DMA) and 1.2436 (converged 10/20/55DMA’s). Firm break here is needed to sideline bears and allow for further recovery. Momentum on daily chart is rising towards the centerlines and stochastic emerged from oversold territory, supporting the notion, as daily cloud continues to underpin. The pair is holding within larger range, defined by 1.2174 (range low / Fibo 38.2% of 1.1409/1.2647) and 1.2647 (200DMA / highs of 14 and 30Apr) and break of either side is needed to generate fresh direction signal.
Res: 1.2414, 1.2434, 1.2484, 1.2500
Sup: 1.2352, 1.2335, 1.2309, 1.2265
