Bulls lose traction on approach to key barrier
Cable pulls back from new 1 ½ month high (1.2767) on Wednesday, as bulls started to lose traction on approach to key barrier at 1.2813 (10 Jun high).
Tuesday’s break and close above 200DMA (1.2697) was strong bullish signal which needs confirmation on repeated close above this barrier and today’s close will be in focus.
Daily studies show fading bullish momentum and stochastic penetrating overbought territory that add to signals of deeper pullback before final attack at 1.2813 target.
Today’s dip so far found footstep at 1.2645 (Fibo 23.6% of 1.2251/1.2767) but has more room to extend towards 10DMA (1.2610) and 1.2570 (Fibo 38.2%) and keep bulls in play on reversal above these levels.
Caution on extension and close below 1.2570 that would question bulls and expose next pivotal supports at 1.2530/11 (rising 20DMA / 17 July trough).
Res: 1.2697; 1.2740; 1.2767; 1.2800
Sup: 1.2645; 1.2610; 1.2570; 1.2530