Thursday’s close below 20SMA and formation of bearish engulfing pattern maintain downside risk.
Strong rejections at both sides yesterday (near 1.1800 at the upside and 1.1680 at the downside) signal indecision, but repeated long-tailed candles in past few days suggest support at 1.1680 zone is very strong and the pair may struggle to break it.
Mixed signals on daily chart with slow stochastic and RSI in neutrality zone and sideways mode.
Stronger bearish signal is developing on weekly chart where RSI and slow stochastic are reversing from overbought zone and signal correction, with the pair being on track for bearish weekly close (the first after five straight weeks in green).
Initial support at 1.1680 (where repeated downside attempts were rejected) is reinforced by rising 30SMA and sustained break here is needed to spark fresh downside.
Otherwise, extended directionless mode could be expected while 1.1680 support holds and the price stays capped below1.1800 pivot.
Converged 10/20SMA’s mark initial resistance at 1.1764.
Res: 1.1764, 1.1789, 1.1846, 1.1889
Sup: 1.1708, 1.1674, 1.1662, 1.1650
