The pair remains firmly in red on Friday and accelerated lower on fresh political uncertainty in the US which pressured the greenback.
Fresh weakness dipped to 110.49, retracing the biggest part of 110.19/111.48 recovery leg and turning focus towards key supports at 110.15/00 (Fibo 61.8% of 107.31/114.73 rally / psychological support).
Bearish structure is highlighted by negative momentum studies and daily MA’s in firm bearish setup.
Falling 10SMA maintains strong pressure after capping recovery attempt and previously forming death-cross on break below 200SMA.
Firm break below 110.15/00 pivot would open way for fresh extension of bear-leg from 113.38 2018 high, posted on 08 Jan) towards targets at 109.54 (15 Sep spike low) and 109.06 (Fibo 76.4% of 107.31/114.73 rally).
Alternative scenario requires bounce trough falling 10SMA (currently at 111.33) to sideline immediate downside risk, but stronger acceleration through 200SMA (111.70) and 50% of 113.38/110.19 fall (111.78) is needed to neutralize and reverse bias to bullish mode.
Res: 110.83, 111.16, 111.33, 111.70
Sup: 110.49, 110.15, 110.00, 109.54
