The pair remains in red on Monday and extends last Friday’s strong fall below key supports at 110.97 (Fibo 61.8% of 108.80/114.49 upleg) and 110.74 (daily cloud base). Fresh extension lower confirms firm bearish bias and opens psychological 110.00 support for test. Broken daily cloud now turned to resistance (spanned between 110.74 and 111.23), followed by cluster of broken daily SMA’s (laying between and 111.68 and 112.11) marking next strong resistance zone (bear-crosses of 100/200 and 55/200 SMA’s have been already formed) and maintaining downside pressure. Close below daily cloud is needed to confirm bears, however, corrective action could be anticipated in the near-term, as slow stochastic on daily chart is oversold.
Res: 110.74, 110.97, 111.23, 111.47
Sup: 110.50, 110.23, 110.14, 110.00
