Bulls struggle at key Fibo barrier
The pair stands at the front foot for the third straight day and tests again pivotal Fibo barrier at 106.68 (38.2% of 109.31/105.05 bear-leg, which repeatedly limited recovery attempts in past two weeks.
Formation of 5/10DMA’s bull-cross and north-heading stochastic / RSI, along with weak Japan’s data that warn of weakening of the economy, are supportive factors but weak momentum keeps in play risk of another upside failure that would keep the downside vulnerable.
Sustained break above 106.68 and falling 20DMA (107.05) is required to generate bullish signal for stronger recovery (reversal of weekly stochastic from oversold zone supports the notion).
North-turning 10DMA (106.14) marks pivotal support, which needs to hold and keep near-term bullish bias.
Firm break here would weaken near-term structure and risk retest of 105 support zone.
Res: 106.68; 107.00; 107.18; 107.39
Sup: 106.33; 106.14; 105.70; 105.05