Bear-leg from 105.67 peak (11 Nov) extends into fifth straight day and broke through significant supports at 104.13/00 (Fibo 61.8% of 103.17/105.67 round-figure) in early Wednesday’s trading.
The dollar remains under strong pressure on fresh wave of risk appetite, inflated by hopes for coronavirus vaccine, but tempered by fears of further economic slowdown on surge in new infections.
Rising bearish momentum and daily moving averages in negative setup suggest that bears may attack key supports at 103.18 (6/9 Nov double-bottom).
Support at 103.76 (Fibo 76.4%) is under pressure, with bids expected at this zone as daily stochastic is oversold.
Profit-taking may precede final push towards 103.18 target, with upticks to be ideally capped under converged daily Tenkan-sen/Kijun-sen (104.42/46) to provide better selling opportunities.
Res: 104.13, 104.42, 104.57, 104.72
Sup: 103.76, 103.44, 103.18, 102.58
