Bears are taking a breather in early Thursday’s trading and holding within narrow consolidation above new 4 ½ month low at 1.1822, posted on Wednesday.
Overall structure remains bearish and favors further weakness for test of initial target at 1.1790 (Fibo 76.4% of 1.1553/1.2555 ascend), with extension towards next key support at 1.1709 (Fibo 38.2% of 1.0340/1.2555 rally).
Meanwhile, the pair may bounce higher on positioning for fresh weakness, as 14-d momentum turns higher and provides positive signal.
Initial resistance lies at 1.1936 (broken Fibo 61.8% of 1.1553/1.2555 upleg), with falling 10SMA (1.1960) expected to cap upticks and keep bears intact.
Traders focusing on release of US inflation data due later today, which could show acceleration in inflation and further boost the dollar.
Res: 1.1879, 1.1897, 1.1936, 1.1960
Sup: 1.1816, 1.1790, 1.1737, 1.1709
