Extension of last Friday’s strong post-US data fall on Monday failed to clearly break below daily cloud base (110.38) at the first attempt. The pair hit session low at 110.30, but bounced higher, on consolidation ahead of renewed attempts lower.
Bids in the zone above 110.00 support keep the downside protected for now, with extended upticks, attracted by daily cloud twist later this week, expected to provide selling opportunities, as overall structure remains firmly bearish.
Sustained break below daily cloud and violation of 110.00 support, below which large stops are parked, would trigger fresh acceleration lower.
Extended upticks are expected to stay capped under daily cloud top at 111.23.
Res: 110.72, 111.00, 111.23, 111.36
Sup: 110.38, 110.14, 110.00, 109.26
