The pair remains in red in Asia/early Europe on Tuesday and probes again into thick daily cloud, following unsuccessful attempt on Monday. Risk-off mode keeps the dollar under pressure, as Monday’s eventual close below 20SMA after four straight failures, was bearish signal. Probes into daily cloud (cloud top lays at 109.66) were so far contained by rising 55SMA (109.38) which guards next pivotal support at 109.17 (Fibo 61.8% of 108.11/110.90 ascend). Firm break here is needed to generate stronger bearish signal for further weakness. Strong bearish momentum and multiple MA’s bear-crosses maintain pressure. Alternative scenario needs repeated close above daily cloud and extension above 20SMA 109.92 to sideline immediate downside risk.
Res: 109.78, 109.92, 110.18, 110.75
Sup: 109.50, 109.38, 109.17, 108.77
