The pair is probing above 200SMA (108.84) again, on fresh rally from 108.30 zone, where Tuesday’s / today’s downside attempts found footstep, keeping intact fresh five-month low at 108.11 for now.
Fresh recovery action was signaled by reversal of slow stochastic from oversold zone on daily chart and may keep the pair in prolonged consolidation before larger bears resume.
Strong negative sentiment on risk-aversion mode keeps the pair under pressure for extension towards next target at 107.84 (Fibo 61.8% of larger 101.17/118.65 rally. Current structure sees limited upside attempts, which should be ideally capped by falling 10SMA (currently at 109.51) and psychological 110.00 barrier.
Firm break above the latter barriers would signal stronger correction and put immediate bears on hold.
Res: 109.00, 109.20, 109.51, 110.00
Sup: 108.60, 108.30, 108.11, 107.84
