The pair holds in red in early Thursday’s trading, maintaining negative tone for the second straight day after strong upside rejection at 107.29 on Tuesday.
Fresh weakness probes below 106 handle (Fibo 61.8% of 105.24/107.29 recovery leg) to generate further bearish signal on firm break lower.
Daily MA’s are back to full bearish setup, 14-d momentum heads south and stays in the negative territory, keeping bearish bias.
Loss of 106 support would lead towards key supports at 105.24 (2018 low, the lowest since Oct 2016) and psychological 105 support.
However, bears need a catalyst for break lower, as loss of 105 handle would open way towards 100 zone and the pair may hold in prolonged consolidation until next week’s FOMC policy meeting.
Res: 106.35; 106.55; 107.00; 107.20
Sup: 106.02; 105.78; 105.45; 105.24
