Bears probe through key med-term supports and could accelerate on clear break
Bears extend lower on Tuesday, adding to Monday’s 1.40% fall and hit new lowest levels since mid-May 2020.
Probe through key supports at 0.8865/60 zone (Aug/Nov higher base) generate strong bearish signal which will require confirmation on close below these levels.
Fresh bears cracked next key support at 0.8837 (converged 100/200WMA’s) with firm break here to confirm strong bearish signal and spark further weakness.
The pair is establishing under the base of thickening weekly cloud (0.8887), with weekly close below this level to reinforce strong bearish stance.
Technical studies on daily and weekly chart maintain strong bearish momentum and moving averages are in negative configuration that support the notion, however, bears might be delayed on failure to clearly break key points at 0.8887/60.
Res: 0.8887; 0.8903; 0.8928; 0.8981
Sup: 0.8837; 0.8800; 0.8746; 0.8718