Bears are taking a breather above new low at 107.84, but consolidation remains narrow and without signs of stronger recovery for now.
Strong negative momentum and falling daily MA’s in bearish configuration support further downside, but oversold conditions warn that bears may stay on hold for some time.
Adding to scenario are huge option expiries on Thu that could keep the pair at 108/109 zone.
Overall picture is bearish and the greenback may extend weakness on dovish comments from Fed, while risk aversion keeps yen supported and long bearish candle of last Friday continues to weigh.
Extended upticks should hold below solid barriers at 109.02/17 (former low of 13 May / falling 10SMA) to keep bears in play for fresh attempts lower and attack at pivotal support at 107.57 (Fibo 61.8% of 104.59/112.40), violation of which would open way towards 2019 low at 104.59 (3 Jan).
Res: 108.17,108.44,109.02,109.17
Sup: 107.84,107.57,107.00,106.43
