Strong two-day recovery from 1.3190 was capped by 200SMA at 1.3340 zone on Wednesday and the pair eased to 1.3300 on Thursday after repeated rejection at 200 SMA barrier.
Limited correction of 1.3538/1.3164 bear-leg, which is part of broader downtrend from 1.3792 (05 May peak) is expected as technical studies remain in bearish setup on daily chart.
In addition, slow stochastic is approaching overbought territory and daily Tenkan-sen resumed steep descend after being in sideways mode in past few days.
Strong bearish pressure is maintained by 10/200SMA death cross and multiple bear-crosses that formed above.
Close below falling 10SMA (1.3287) is needed to signal reversal and lower top at 1.3340, with extension below 1.3250 (Fibo 61.8% of 1.3190/1.3340 recovery leg) to confirm.
Initial target lies at 1.3190 (19 June trough) ahead of 1.3164 (14 June low), break of which would expose psychological 1.3000 support and 1.2968 (2017 low).
Res: 1.3340, 1.3351, 1.3383, 1.3395
Sup: 1.3287, 1.3250, 1.3200, 1.3190
