Repeated failure to close below 1.0650 Fibo 61.8% support, despite yesterday’s marginally lower low at 1.0634, signal strong hesitation ahead of key supports at 1.0622 (100SMA / daily cloud top).
Long lower shadows of daily candles of past two days suggest possible basing attempt, as Tuesday’s trading was shaped in Hammer candle.
The notion is supported by slow stochastic reversal from oversold territory.
However, bounce was so far unable to clearly break above 55SMA (1.0672), despite upticks to 1.0683 (session high), keeping upper pivot at 1.0700 (daily Kijun-sen) intact for now.
Close above 1.0700 is needed to generate firmer bullish signal for stronger correction of the downleg from 1.0905 (27 Mar high).
Conversely, prolonged consolidation under 1.0700 could be expected ahead of fresh push lower.
Res: 1.0683, 1.0700, 1.0721, 1.0737
Sup: 1.0665, 1.0650, 1.0634, 1.0622
