The pair came under renewed pressure in early Wednesday’s trading as recovery in stock markets lost traction.
Near-term price action is holding within thick 4-hr Ichimoku cloud with fresh weakness probing through cloud base (108.97) after recovery attempts were repeatedly rejected under cloud top (109.75).
Fresh easing brings daily studies back to full bearish setup which would underpin bears for renewed attempt towards key support at 108.28 (26 Jan low) after strong downside rejection at 108.45 on Tuesday.
Clear break below 4-hr cloud base (also Fibo 61.8% of 108.45/109.71 upleg) is required to generate bearish signal for extension towards 108.28.
Falling 10 SMA maintains bearish pressure (currently at 109.21) and return above it would ease immediate downside pressure.
However, stronger bullish signals could be expected on sustained break above 4-hr cloud top (109.75) and falling 20SMA (109.94).
Res: 109.21, 109.75, 109.94, 110.26
Sup: 108.45, 108.28, 108.00, 107.31
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