The remains in red on Thursday and trading near new 2 ½ week low, hit after Wednesday’s post-US CPI drop (the biggest daily fall since Nov 26).
Long tails of yesterday’s and today’s candle signal that bears face headwinds at 114.44 Fibo support (50% retracement of 112.53/116.35 / 30DMA) but the action remains weighed down by fresh negative dollar’s sentiment and bearish signal generated on Wednesday’s close below 114.89 (Fibo 38.2%, reinforced by 20DMA).
Recent rapid loss of bullish momentum (14-d momentum indicator is at the borderline of the negative territory) suggests that bears remain firmly in play, also attracted by thinning daily cloud.
Firm break of cracked 114.44 pivot would risk test of Fibo 61.8% (113.99) and daily cloud top (113.63) in extension).
Near-term bias is expected to remain with bears while the action stays below broken Fibo support / 20DMA (114.89).
Res: 114.70; 114.89; 115.04; 115.44.
Sup: 114.36; 114.20; 113.99; 113.63.
