The pair is consolidating after strong two-day fall which resulted in close below daily cloud.
Today’s extension lower probed below key supports at 110.00/109.85 zone (double-Fibo/100/200SMA’s), but dip was so far short-lived, showing strong hesitation here.
Reversing momentum and slow stochastic at the border of oversold territory are initial signs of reversal, which could be additionally boosted by formation of Hammer on daily chart.
Bullish scenario requires daily close above 110.20 for confirmation, to open way for extension towards daily cloud base at 110.45 and possible extension towards falling 10SMA (110.70) on break.
On the other side, bearish weekly studies favor further downside, with upticks seen as positioning for fresh weakness.
Only close above daily cloud (110.45/111.37) would neutralize bearish threats.
Res: 110.20, 110.45, 110.70, 111.02
Sup: 110.00, 109.77, 109.30, 108.90
