The pair bounced after hitting fresh marginally lower three-week low at 1.2546 on Tuesday, driven by greenback’s recovery.
Downside action was repeatedly contained by Fibo 61.8% of 1.2413/1.2778 support at 1.2552 and the pair may extend consolidation while the latter holds.
Mild upside action was seen so far, with initial barriers at 1.2607/09 (Monday’s high/20SMA) staying intact for now, as weak tone still dominates on near-term studies and hourly cloud (spanned between 1.2602/23) weighing on near-term action.
Stronger upside could be expected on sustained break above hourly cloud, otherwise the current action could be seen as consolidation before bear-leg from 1.2778 (15 Aug lower top) resumes.
Outcome from this week’s key event, Jackson Hole Symposium would generate firmer direction signals.
Res: 1.2609, 1.2623, 1.2635, 1.2660
Sup: 1.2546, 1.2500, 1.2450, 1.2413
