The pair was sharply lower on Thursday, pulling back after renewed probe above 113.00 barrier, which was dented on Wednesday’s strong rally.
Fresh weakness comes in reaction on sharp fall of Japanese stocks, triggered by latest rising uncertainty over Catalonia, which sparked fresh safe-haven buying.
Pullback found footstep at 112.57 (Fibo 38.2% of 111.65/113.14 upleg) but deeper pullback cannot be ruled out if situation in Catalonia deteriorates.
Break below 112.57 and converged 10/20SMA’s at 112.43 would generate stronger bearish signal and risk further downside.
Wednesday’s low at 112.13 marks next pivotal support, loss of which would risk fresh attack at key 200SMA support (111.74).
Conversely, extended consolidation ahead of final attack at key 113.25/43 barriers could be expected while pullback stays limited.
Res: 113.14, 113.25, 113.43, 114.00
Sup: 112.57, 112.43, 112.13, 111.85
