Bears are pausing but hold grip
Bears are taking a breather after sharp fall in past two days, but remain fully in play, following bearish signals on Friday’s close below 200DMA (0.6690) and daily Kijun-sen / 50% retracement of 0.6458/0.6899 upleg (0.6679).
Weakening daily studies (MA’s turned to bearish setup, south-heading 14-d momentum is touching the border of negative territory) keep the downside at risk, with repeated daily close below these levels to keep the downside at risk for test of 0.6626 (Fibo 61.8% of 0.6458/0.6899 / weekly cloud base).
Bearish engulfing on weekly chart (the pair has registered the biggest weekly loss since the third week of Aug 2022), adds to negative outlook.
Broken 200DMA offers solid resistance at 0.6690, followed by converged 20/100DMA’s (0.6710) and broken Fibo 38.2% (0.6731).
Res: 0.6690; 0.6710; 0.6731; 0.6784
Sup: 0.6662; 0.6626; 0.6600; 0.6562