The pair fell sharply on Friday and hit new over one week low at 105.61, driven by risk aversion on the newest White House shake-up, as President Trump decided to replace his national security advisor.
Fresh weakness comes after yesterday’s short-lived dip to 105.78, as renewed probe below 106 Fibo support triggered stops parked below Thursday’s low.
Firm bearish setup of daily studies and growing negative sentiment around the greenback which increased safe-haven demand, keep the pair under strong pressure.
Bears eye key supports at 105.24/00 (02 Mar low/round-figure support) which might be violated before next week FOMC meeting.
A number of stops below 105 handle could be triggered on break and spark fresh acceleration lower. Fresh bears below 105 would look for Fibo projections at 104.48 and 102.73 and could extend towards psychological 100 support if Fed disappoints next week.
Falling thick hourly cloud (106.09/106.53) weighs and should limit corrective upticks.
Res: 105.78, 106.09, 106.37, 106.53
Sup:105.45, 105.24, 105.00, 104.48
