The pair holds in red on Thursday and showing initial signal of reversal after strong rally of past four days stalled on approach at 108 barrier.
Pullback from recovery high at 107.90, posted on Wednesday, returned below falling 10SMA (currently at 107.36) and dipped near pivotal support at 107.00 (Fibo 38.2% of 105.54/107.90 upleg), looking for firmer bearish signal on break lower.
Overall bearish structure favors fresh weakness after correction, with close below 107 handle today needed to form bearish outside day pattern and signal further easing towards next pivotal support at 106.44 (Fibo 61.8% of 105.54/107.90).
Daily MA’s turned to full bearish setup, while 14-d momentum heads south in deep negative territory, supporting further weakness.
Alternative scenario requires sustained break above 108 and extension through falling 20SMA (108.26) to bring near-term bulls back to play.
Res: 107.36, 107.76, 107.90, 108.26
Sup: 107.00, 106.72, 106.44, 106.10
 and dipped near pivotal support at 107.00 (Fibo 38.2% of 105.54/107.90 upleg), looking for firmer bearish signal on break lower.){kind=link}