The pair fell to fresh multi-month low at 108.33 overnight, as rising geopolitical tensions put the greenback under pressure. Break below supports at 108.70/60 zone which kept downside attempts in past two weeks limited, opens way towards key med-term support at 108.11 (2017 low posted on 17 Apr). Sustained break here would generate strong bearish signal for continuation of larger downtrend from 118.66 (15 Dec 2016 peak). Strong bearish sentiment and firmly bearish technical studies are supportive for further weakness, however, hesitation ahead of 108.11 pivot could be anticipated. Daily cloud is going to twist next week and may attract for some corrective action before final push through 108.11 trigger. Former lows at 108.60/70 now act as immediate barriers, followed by falling 10SMA (109.30) and 20SMA (109.70) which should cap extended upticks.
Res: 108.70, 109.00, 109.70, 110.00
Sup: 108.11, 107.49, 107.00, 106.71
