Cable trades in red on Monday and holding within daily cloud, after attempts in past four days failed to close below cloud top.
Fresh weakness tested strong support at 1.2850, provided by daily cloud base and Fibo 61.8% of 1.2588/1.3268 rally.
Eventual break and close below here is needed to signal resumption of broader downtrend from 1.3268 (03 Aug high), after bears paused for last week’s consolidation above rising daily cloud.
Negative outlook is supported by bearish setup of daily studies, with bear-cross of 10/55SMA’s forming today and offering additional pressure.
Sustained break below 1.2850 would open another key support at 1.2811 (12 July trough) and risk fresh bearish extension.
Broken 100SMA (1.2872) marks initial resistance, ahead of daily cloud top (1.2908) and last week’s congestion, reinforced by 55SMA at 1.2928, which is expected to limit extended upticks.
Res: 1.2872, 1.2908, 1.2928, 1.2970
Sup: 1.2850, 1.2811, 1.2749, 1.2700
