The pair is struggling at key barriers, as yesterday’s strong rejection at daily cloud top formed Shooting Star pattern and generated reversal signal.
Near-term studies are in mixed mode, while bullish structure on daily chart wouldn’t be harmed significantly while lower pivots at 1.0738/23 (rising 10 SMA / daily Tenkan-sen) stay intact.
This may leave space for fresh upside attempts, however, plethora of strong barriers that lies ahead (falling 100SMA at 1.0787 and daily cloud top / upper 20d Bollinger band at 1.0824) may limit rallies.
Also, markets are awaiting today’s release of US jobs data for stronger trading signals.
Expect increased downside pressure on firm break below 1.0738/23 pivots that would trigger fresh bearish acceleration.
Conversely, sustained break above daily cloud is needed to signal bullish continuation.
Res: 1.0770, 1.0787, 1.0810, 1.0824
Sup: 1.0738, 1.0723, 1.0683, 1.0641
