The extends steep descend into second straight day on Wednesday with fresh bearish acceleration sparked by eventual break below key supports at 110.15/00 (Fibo 61.8% of 107.31/114.73 rally / psychological support) and triggering stops parked below.
Bears eye immediate target at 109.54 (15 Sep spike low) ahead of more significant 1.0906 support (Fibo 76.4% of 107.31/114.73 ascend), as the greenback’s sentiment soured further on comments from US Treasury secretary Mnuchin in Davos, favoring weaker dollar.
Overall picture is firmly bearish and favors further easing but bears could be interrupted by short covering.
Former key supports at 110.00/15 now act as resistances with stronger upticks expected to stay capped by falling daily Kijun-sen / 10SMA (110.66/110.73).
Res: 110.00, 110.15, 110.66, 110.73
Sup: 109.54, 109.06, 108.60, 108.26
 and triggering stops parked below.){kind=link}