Key support under strong pressure after post-NFP fall
The pair dipped to sub-108 zone and pressured key support at 107.81 (5 May low, the lowest since early Jan) as disappointing US NFP data, with big downward revision of Apr figure and weak average hourly earnings, added to expectations for Fed rate cut and soured dollar’s sentiment.
Friday’s repeated upside attempts before data were capped at 108.62 (Fibo 38.2% of 109.92/107.81) and below pivotal falling 10SMA (108.74) with subsequent bearish acceleration signaling that consolidation above 107.81 low might be over.
Technical studies show strong negative momentum and daily MA’s returned to full bearish setup that adds to downside risk.
Eventual break below 107.81 pivot would expose next key support at 107.56 (Fibo 61.8% of 104.59/112.40 ascend).
Persisting fears of escalation of trade war continue to fuel safe-haven demand and add to negative outlook.
Res: 108.22; 108.40; 108.62; 108.74
Sup: 107.81; 107.57; 107.00; 106.43