The price action in early Wednesday’s trading is holding within narrow consolidation just above pivotal 200WMA (1.1312) which was cracked on Tuesday’s dip to 1.1306. Two consecutive bearish daily candles (Mon/Tue) with long upper shadows signal that the upside remains protected and turned near-term bias to bearish mode. Strong bearish momentum on daily chart and Tuesday’s close below converged 10;20;30 SMA’s (1.1360 zone) maintain bearish pressure, along with falling thick daily cloud and Monday’s bull trap pattern, formed after strong upside rejection. Bears look for break through pivotal supports at 1.1312/08 (200WMA/Fibo 76.4% of 1.1267/1.1442 upleg) to generate bearish signal for attack at 1.1267 (28 Nov trough) and possible extension towards 2018 low (1.1215). Strong barriers at 1.1360 zone (converged MA’s/daily Kijun-sen) are expected to limit upticks and keep bears in play.
Res: 1.1334, 1.1360, 1.1400, 1.1418
Sup: 1.1312, 1.1306, 1.1267, 1.1215
