Firm break below daily cloud base exposes key Fibo support at 105.20
The pair hit new seven-week low at 106.20 in Asian session on Wednesday, signaling continuation of the downtrend from 111.71 (24 Mar high).
Tuesday’s close below daily cloud base, after last week’s probes lower were short-lived but subsequent recovery was capped by cloud top.
After emerging below cloud base, bears probed below important Fibo support at 106.44 (50% of 101.18/111.71), with close below to add to negative signals.
Rising negative momentum on daily chart, MA’s in full bearish configuration and thick daily cloud maintain pressure.
Firm break below 106.44 would open way towards next significant support at 105.20 (Fibo 61.8% of 101.18/111.71).
Bearish bias to remain intact while the price action holds below daily cloud base (106.70).
Res: 106.70; 106.94; 107.36; 107.69
Sup: 106.20; 106.00; 105.85; 105.20