The pair is consolidating above strong supports and targets at 110.15/00 (Fibo 61.8% of 107.31/114.73 ascend / psychological support) which were approached on Monday’s extension to 110.32.
Strong near-term bearish bias favors selling upticks on correction for final break through 110.15/00 pivots which could trigger fresh bearish acceleration towards next significant support at 109.10 (weekly cloud base).
Recovery attempts were so far limited by falling hourly cloud and failed to sustain probes above first strong barrier at 110.83 (former key support, low of 27 Nov).
However, stronger correction cannot be ruled out as bullish signals are developing on reversal of daily RSI from o/s territory, with deeply oversold slow stochastic turned sideways.
Lift above thickening hourly cloud (110.90/111.14) is needed to generate bullish signal for extended recovery.
Broken 200SMA marks strong barrier at 111.68 which is expected to cap extended rallies.
Res: 110.90, 111.14, 111.68, 111.89
Sup: 110.47, 110.32, 110.15, 110.00
