The pair bounced above 0.78 handle after retesting key supports at 0.7780 zone (200/100 SMA’s) in Asia.
Strong fall on Tuesday was contained here, with repeated failure, proving the strength of support.
The pair showed little reaction on downbeat Chinese PMI data released in early Asian trading, but immediate outlook remains negative and favoring renewed attacks at key supports within 0.7780 and 0.7760 zone (consisting of 200/100SMA’s / daily cloud base and 09 Feb low).
Extended consolidation is likely to precede as bears show strong hesitation and fresh bullish momentum is building.
Stronger upticks are expected to ideally remain under 0.7858/68 (10/55SMA bear-cross / falling 20SMA) with extensions to be capped by cloud top (0.7884) and keep bearish bias in play.
Res: 0.7830, 0.7858, 0.7868, 0.7884
Sup: 0.7780, 0.7770, 0.7760, 0.7742
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