The pair holds in red on Monday, as dollar weakened after Friday’s mixed US jobs data which reduced hopes of stronger pace of US rate hikes in 2018.
Extension of recovery rally last Friday probed briefly above psychological 107 barrier but failed to close above 106.88 pivot (Fibo 61.8% of 107.90/105.24 bear-leg) and generate stronger bullish signal.
Fresh easing increases bearish momentum which could further deflate dollar. Monday’s action was so far held by 10SMA (106.38) with break lower to bring daily MA’s to full bearish setup and risk further easing as daily techs are bearish overall.
Extended consolidation could be expected while 10SMA holds, while stronger bullish signals would be generated on close above falling 20SMA (106.65) and Fibo barrier at 106.88.
Res: 106.65, 106.88, 107.05, 107.67
Sup: 106.38, 106.15, 105.89, 105.45