Bears are pausing on approach to key support at 1.1300 (15 Aug low) after Friday’s action was strongly rejected at 1.1335 and left long-tailed bullish daily candle, which also formed bullish outside day.
Reversal of daily slow stochastic from oversold zone adds to positive signals, but momentum remains weak and daily MA’s in full bearish setup, so far prevent stronger upside action.
Violation of pivotal barriers at 1.1444/53 (Fibo 38.2% of 1.1621/1.1335 bear-leg/falling 10SMA) is needed to generate bullish signal for further recovery, but overall bearish structure keeps the downside favored and upticks seen as better selling opportunity. Corrective action should be capped under 1.1500 zone (broken Fibo 61.8% of 1.1300/1.1815/falling 20SMA) to keep bears intact for final push towards key 1.1300 support.
Last week’s long bearish candle and the pair on track for strong monthly loss, support scenario.
Res: 1.1421, 1.1432, 1.1453, 1.1491
Sup: 1.1383, 1.1335, 1.1312, 1.1300
