Bears are taking a breather just above 2023 low (1.0483) following steep bearish acceleration in past six days (the pair was down 1.7%), as daily indicators fell deep in oversold territory, prompting traders to collect some profits.
Overall technical picture on daily chart is firmly bearish and points to further losses, as fundamentals are also negative, with strong dollar on Fed’s higher for longer rate prospect, weighing on a single currency.
Recovery attempts should be limited in such environment and offer better selling opportunities.
Initial resistance lays at 1.0570 zone (falling 5DMA / Wednesday’s high), followed by more significant barriers at 1.0611/17 (broken Fibo 38.2% of 0.9535/1.1275 / falling 10DMA) which should cap extended upticks.
Break of annual low (posted in January) would spark fresh weakness and expose targets at 1.0405 (50% retracement), 1.0284 (weekly cloud base) and 1.0200 (Fibo 61.8% retracement of 0.9535/1.1275).
The pair is on track for the eleventh consecutive weekly loss and also for the biggest monthly drop since April 2022, which adds to negative outlook.
Res: 1.0565; 1.0617; 1.0673; 1.0700.
Sup: 1.0483; 1.0405; 1.0284; 1.0200.
 following steep bearish acceleration in past six days (the pair was down 1.7%), as daily indicators fell deep in oversold territory, prompting traders to collect some profits.){kind=link}