Fresh risk aversion pushes the pair significantly lower; US NFP data in focus
The pair accelerated lower on Friday after downbeat China’s export data and significant narrowing of trade surplus revived worries of global growth slowdown and sparked fresh risk aversion.
Fresh bears surged through strong support at 111.40 (converged 10/200/100 SMA’s) and tested rising 20SMA (111.00) where temporary footstep was found.
Initial reversal signal is developing on daily chart, with weekly close below broken cluster of MA’s to add to negative outlook, however, further verification of trend change would be required on extension below 20 and 30SMA’s (111.00 / 110.51 respectively).
US jobs data are expected to provide fresh signal and could reverse current pullback on strong outcome today.
Res: 111.40; 111.65; 111.85; 112.13
Sup: 111.00; 110.74; 110.51; 110.01