The pair accelerated higher in early Friday’s trading, following triple downside rejection which left long-tailed daily candle of past three days, signaling that pullback from 111.39 (21 May high) runs out of steam.
However, prevailing bearish tone on daily chart as momentum remains weak and falling 10SMA is forming the third bear-cross (10/200, 10/20 and currently probing below 30SMA), suggests limited correction before bears resume.
Converged 10/30SMA’s (109.56) should limit recovery and keep bearish bias in play.
Strong supports lay at 108.20/00 zone (rising 55SMA which formed bull-cross with 100SMA and 50% retracement of 104.63/111.39 rally) and break here would generate strong bearish signal.
On the other side, converged 10/30SMA’s mark initial pivot, followed by 20SMA at 109.71, with weekly close above it to neutralize bears and shift near-term focus higher.
Res: 109.07, 109.50, 109.74, 110.00
Sup: 108.99, 108.72, 108.35, 108.20
