The pair eases on Wednesday after the third straight failure at 110 zone, as traders took some profits on fears that bulls may stall her again. Dip was so far contained by initial 10SMA support (109.46) but could extend as momentum continues to weaken on daily chart and approaches negative territory and slow stochastic is reversing from overbought zone. Loss of 10SMA support would risk test of converged 20/30SMA’s 109.25, violation of which would push the price in the lower side of larger 108.49/110.16 range (confirmed by double weekly Doji candle). Clearer direction signal could be expected on break of either boundary of the range.
Res: 110.16, 110.22, 110.91, 111.25
Sup: 109.46, 109.25, 108.72, 108.49
