Weakness after another failure at daily cloud top (Tuesday’s rally closed above cloud and peaked at 111.65 and high was retested today before reversal) extended in early hours of US trading on Wednesday. Weaker than expected US PPI data (Aug m/m -0.1% vs 0.2% f/c / annualized 2.8% in Aug vs 3.2% f/c), put the dollar under fresh pressure. Weakening momentum is crossing into negative territory and helps fresh near-term bears which approach a cluster of converged daily MA’s (5/10/55) and base of rising hourly cloud at 111.20 zone. This marks pivotal support, loss of which would confirm reversal and shift immediate focus lower, signaling extension of three-week sideways mode within thick daily cloud.
Res: 111.55; 111.65; 111.87; 112.15
Sup: 111.20; 111.02; 110.85; 110.58
