The cross retested Tuesday’s high at 0.8885 on Wednesday but failed to hold gains and fell back below daily Kijun-sen which also acts as solid barrier at 0.8877. No stronger upside action was seen after Tuesday’s trading ended in long-legged Doji, signaling possible formation of reversal pattern on daily chart. Weakening momentum studies suggest limited upside and extended consolidation while Tuesday’s low at 0.8841 holds. Underlying bears maintain downside risk as thickening daily cloud continues to weigh. Sustained break below 0.8841 would open way for bearish extension towards 0.8791 (07 Nov trough) for full retracement of 0.8791/0.9013 upleg. Conversely, close above daily Kijun-sen is seen as minimum requirement for recovery signal and possible extension towards daily cloud base (0.8920).
Res: 0.8877; 0.8886; 0.8920; 0.8953
Sup: 0.8854; 0.8841; 0.8811; 0.8791