The pair is recovery mode on Friday and reversed some of previous day’s losses, but near-term action remains biased lower.
Red daily candles in past two days weigh on near term action, as the pair is stuck around 20SMA (113.48) which was broken on Thursday’s dip to 113.09, but bears failed to close below it.
Firm break below 20SMA and 112.95 (31 Oct trough) is needed to confirm reversal and trigger bearish extension towards 111.90 target (Fibo 38.2% of 107.31/114.73 ascend).
Meanwhile, extended recovery attempts are expected to be capped by 10SMA (113.75) also Fibo 38.2% of 114.73/113.09 downleg).
Res: 113.63, 113.75, 114.06, 114.34
Sup: 113.19, 113.09, 112.95, 112.50
