Bearish outside day sparks extension of pullback from new high at 109.85
The pair remains firmly in red on Tuesday (following Monday’s 1.05% drop) and extends pullback through 108.40/24 support zone, consisting of 200DMA / Fibo 38.2% of 105.98/109.85 / 10DMA / 100DMA.
Monday’s long red daily candle formed bearish outside day which signals top and adds to bearish pressure.
Fresh extension lower cracked supports at 107.91 (20DMA / 50% retracement and 107.75 (55DMA), approaching next key supports at 107.53 (daily cloud top) and 107.46 (Fibo 61.8% of 105.98/109.85).
Falling daily RSI / stochastic / momentum and MA’s turning to bearish setup, with daily close below 200/100DMA’s required to maintain negative near-term outlook.
Res: 108.24; 108.40; 108.54; 108.82
Sup: 107.91; 107.75; 107.53; 107.46