The pair is holding within narrow consolidation for the third day, after denting key short-term support at 0.7489 (09 Mar low), but was so far unable to close below and signal bearish continuation.
Tuesday’s long-legged Doji signaled strong indecision, but so far lacking reversal signals, as 100SMA (0.7513) continues to cap.
Slow stochastic is attempting to reverse from oversold r=territory on the daily chart, which would generate initial bullish signal, however, confirmation of reversal would require lift above next pivot, 200SMA at 0.7550, which is reinforced by falling 10SMA that is approaching in attempt to form bear-cross and intensify downside pressure.
Daily studies are in firm bearish mode and suggest further extension of the wave C (on which the pair is currently riding) through its FE 138.2% (current low at 0.7472) towards the base of thick daily cloud at 0.7449 and FE 161.8% at 0.7436.
Extended consolidation ahead of fresh push lower is seen as likely near-term scenario.
Res: 0.7513, 0.7550, 0.7585, 0.7596
Sup: 0.7472, 0.7449, 0.7436, 0.7400
