The pair faces headwinds from strong 109.75 barrier (20SMA/daily Kijun-sen/50% retracement of 111.39/108.11 bear-leg) in early Monday’s trading. Strong post-US data rally on Friday stalled here and today’s renewed attack was capped, signaling bulls might be running out of steam.
Weakening momentum on daily chart supports the notion as the pair returns below falling 10SMA (109.46) after failing to close above it on Friday, as 10SMA formed a multiple bear-crosses with 200, 20 and 30SMA’s, adding to negative near-term outlook.
Extended dips need to find footstep above 5SMA (109.09) to keep in play hopes for renewed attempts at 109.75 pivot, break of which is needed to open way towards next key points at 110.00 (psychological barrier) and 110.16 (200SMA).
Otherwise, loss of 5SMA would turn near-term bias into negative mode and signal an end of corrective phase from 108.11.
Res: 109.60, 109.75, 110.00, 110.16
Sup: 109.36, 109.09, 108.72, 108.27
