The pair remains in red in early Friday’s trading but holding above initial support at 111.00 (55SMA) as Thursday’s long-tailed Doji signaled strong downside rejection.
Bearish signal comes from slow stochastic which reversed from overbought zone and shows a plenty of room for further downside for extension towards a cluster of supports provide by daily MA, starting from 110.90 (200SMA), 110.82 (10SMA) and 110.64 20 SMA/Fibo 38.2% of 108.80/111.78). The latter is required to contain extended dips and keep focus at the upside, as thin daily cloud may attract for fresh attacks.
Conversely, firm break below 110.64 pivot would risk deeper correction of 108.80/111.78 upleg.
Res: 111.42, 111.78, 112.12, 112.24
Sup: 111.16, 111.00, 110.90, 110.64
