The pair holds in red in early Monday’s trading and signaling increasing downside risk after last week’s three-day recovery rally failed to clear key barriers at 109.26/32
Fibonacci resistances, 61.8% of 111.48/108.28 and 38.2% of 113.63/108.28) as the action was capped by falling 20SMA.
Daily RSI is moving lower after failing to regain 50 level and momentum turned south, holding in negative territory.
Overall picture is bearish and fresh negative signals are developing after recovery rally ran out of steam at key resistances, signaling that corrective phase might be over.
Key near-term points lay at 109.38 (falling 10SMA) and 109.21 (Friday’s low) close below which is needed to confirm reversal and re-focus key support at 108.28 (26 Jan low).
Alternatively, fresh strength and close above 20SMA (110.26) will be bullish signal for extended correction.
Res: 110.26, 110.32, 110.72, 111.14
Sup: 109.75, 109.38, 109.21, 109.02
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