The pair accelerated lower on Tuesday, being down around 0.6% since opening in Asia, as dollar weakened across the board on renewed risk sentiment over relaxing coronavirus restrictions. Fresh bears broke below double-bottom at 106.92 and also surged through thickening daily cloud (106.70/107.01), to post new nearly six-week low at 106.56. Close below 106.92 would generate initial bearish signal which will require confirmation on close below cloud base. Rising negative momentum and daily MA’s in full bearish setup support scenario, as eventual break of 106.92 higher base, above which the pair ranged for nearly one month, is expected to spark significant weakness. Bears eye immediate support at 106.44 (50% of 101.18/111.71) and could extend towards 105.85/20 (17 Mar low / Fibo 61.8%) on stronger acceleration.
Res: 106.92; 107.01; 107.48; 107.69
Sup: 106.56; 106.44; 106.00; 105.85
