Fading risk appetite signals an end of brief recovery and shifts focus lower
Recovery attempts from new 11-year low (0.6583) were so far mild, as today’s action is back to red on fading signals of renewed risk appetite.
Fresh optimism on comments of possible vaccine for coronavirus and brief easing of US dollar were so far short-lived and traders return to risk-off mode.
Technical studies on daily chart are negatively aligned (rising bearish momentum / MA’s in negative setup, but flat stochastic / RSI on borderlines of o/s territory) and keep near-term action at the back foot.
Bears could extend much lower on fresh bearish acceleration as next significant support lays few figures below (Fibo 76.4% of 0.4773/1.1079 ascend at 0.6261).
Falling 5DMA marks initial barrier (0.6622) which so far capped recovery attempts and guarding pivotal barriers at 0.6668 (10DMA) and 0.6686 (bear-trendline off 0.7032 peak).
Only firm break here would undermine larger bears.
Res: 0.6622; 0.6668; 0.6686; 0.6710
Sup: 0.6592; 0.6583; 0.6532; 0.6500