Fresh weakness may extend on break of triangle support
The pair trades in red for the second straight day and extends weakness through daily cloud top (5.6900) to crack 55DMA (5.6739) and pressure triangle support (5.6683).
Near-term action holds within narrowing range, with break of triangle support to expose pivotal supports provided by higher base (5.6460) and 200DMA (5.6213), break of which would generate strong bearish signal.
Daily techs are mixed (stochastic and RSI are heading south, MA’s are in mixed mode, while momentum is rising) and lacking stronger direction signal.
Focus turns at Turkey’s Manufacturing PMI and inflation data (due at 1 and 3 Oct respectivel), which would provide fresh signals.
Res: 5.7028; 5.7214; 5.7355; 5.7501
Sup: 5.6739; 5.6683; 5.6590; 5.6460