The pair maintains bearish tone in early Monday’s trading and looking for retest of key supports at 108.73/72 (weekly cloud top / 11 Aug low) after last Friday’s attack failed after price dipped to 108.60 but closed well above after quick recovery and left long-tailed daily candle.
Bearish studies are supportive for further downside and firm break below 108.83/72 would trigger extension of bear-leg from 110.94 (16 Aug high) and open another key support at 108.11 (14 Apr low).
Falling hourly cloud weighs on near-term action with cloud base at 109.44 (also session high) marking solid resistance, ahead of daily Tenkan-sen at 109.77, which should cap extended upside attempts.
Res: 109.44, 109.60, 109.77, 109.95
Sup: 108.83, 108.72, 108.11, 107.88
