The cross accelerated lower on Monday and penetrated daily cloud (0.8817/0.8775), on trach to complete reversal pattern on daily chart after Friday’s action ended in Hanging Man.
Fresh weakness eyes key support zone between 0.8785 and 0.8775 (consisting of converged 55/10SMA’s; Fibo 38.2% of 0.8680/0.8840 and daily cloud base).
Firm break here is needed to confirm reversal and open way for further retracement of two-legged recovery from 0.8620 (17 Apr low).
Daily slow stochastic emerged from overbought zone, while RSI and momentum turned south, supporting the notion.
Broken 100SMA marks initial resistance (0.8808) which is expected to limit the upside and keep upper pivots at 0.8840 (04 May high) and 0.8876 (200SMA) intact.
Res: 0.8808; 0.8840; 0.8876; 0.8900
Sup: 0.8775; 0.8756; 0.8742; 0.8718
