Bull-trap and bearish engulfing weigh but neutral tone dominates on Friday
The pair is holding within a narrow range on Friday, partially on low volumes due to US holiday and partially on conflicting signals that caused Thursday’s action to end in long-legged Doji, signaling strong indecision.
Risk sentiment boost from solid US NFP was offset by growing concerns about rising number of new virus cases.
Today’s action is moving between 55DMA (107.39) and 30DMA (107.60) that mark initial boundaries.
Conflicting daily studies (mixed MA’s setup / flat momentum and RSI) lack clearer signal, but near-term action could be weighed by Tue/Wed bearish engulfing and bull-trap above 50% of 109.85/106.07.
Negative scenario would require break of 55DMA; Fibo 38.2% of 106.07/108.16 upleg (107.36) and daily cloud base (107.25) to open way for further easing.
Alternatively, lift above 30DMA would sideline downside risk and expose next pivotal barrier at 107.84 (100DMA).
Res: 107.60; 107.84; 107.98; 108.16
Sup: 107.43; 107.36; 107.25; 107.11