Bears are pausing above key Fibo support but negative bias remains intact
Bears are taking a breather after Thursday’s 0.8% fall which marked the fifth consecutive day in red and was contained by key Fibo support at 0.6769 (61.8% of 0.6670/0.6929).
Optimistic comments from White House economic advisor about constructive talks between the US and China were offset by comments that President Trump is not ready to sign the deal yet.
Fresh optimism revived risk mode and boosted Aussie, but recovery was so far short-lived.
The price returned to daily cloud, which was penetrated on Thursday’s bearish acceleration, signaling that bears remain in play for renewed probe through key supports at 0.6769/61 (Fibo / daily cloud base).
Daily MA’s remain in full bearish setup and negative momentum is rising, with the pair on track for the second consecutive weekly close in red, adding to negative outlook.
Broken Fibo 50% support at 0.6800 marks pivotal barrier and close above here would sideline immediate bears, but more evidence (lift above 30/100DMA’s at 0.6830/40) will be required to signal reversal.
Res: 0.6800; 0.6812; 0.6830; 0.6840
Sup: 0.6769; 0.6751; 0.6723; 0.6710