The pair entered consolidation phase on Thursday, following strong fall the previous day, after Fed minutes inflated the greenback.
Near-term action is moving within daily cloud, which was penetrated on Wednesday’s strong bearish acceleration.
Break through cloud top and close in the cloud was bearish signal, reinforcing negative outlook on bearish setup of daily techs for further extension of bear-leg from 0.7988 (16 Feb high) towards key supports, converged 100/200SMA’s (0.7773), 09 Feb low (0.7758) and Fibo 61.8% of 0.7500/0.8135 ascend (0.7742).
Bears may show stronger hesitation on approach to these supports which could result in slowing bearish momentum and stronger corrective upticks.
Broken cloud top, reinforced by 55SMA marks initial resistance at 0.7839, with extended rallies to be capped by 10SMA (0.7872) to keep bears intact for fresh attempts lower.
Res: 0.7839, 0.7872, 0.7900, 0.7920
Sup: 0.7790, 0.7773, 0.7758, 0.7742
