Bears found footstep at 1.2925, just above key support at 1.2904 (100SMA / Fibo 38.2% of 1.2397/1.3217), after four-day fall which accelerated on Tuesday, on strong bearish signal on break below 200SMA).
Pullback from 1.3217 (25 Jan high) is taking a breather ahead of strong support, as slow stochastic turned sideways in deep oversold territory.
The current action could be seen as positioning for fresh weakness as momentum enters negative territory and daily 5/10/20 SMA’s turned to bearish setup and 5/200SMA’s formed death-cross.
Broken 20SMA offers immediate resistance at 1.2984, which should ideally cap consolidation, but stronger upticks cannot be ruled out.
Broken 200SMA (1.3036) is expected to limit extended corrective upticks and keep bears intact.
Eventual break below 1.2904pivot would risk extension towards 1.2807/05 (50% retracement / 55SMA).
Only return and close above 200SMA would sideline bears and signal higher base at 1.2925.
Res: 1.2984,1.3000,1.3024,1.3036
Sup: 1.2925,1.2904,1.2887,1.2807
