Recovery attempts need break above falling 20 DMA to signal reversal
The cross holds in green for the second day and extends gains above falling 10DMA (0.8844), pressuring first pivots at 0.8900 zone (16/19 Sep spike highs).
Larger bears may take a breather after failure to clearly break below 200DMA (0.8834) and being contained by key supports at 0.8800 zone (Fibo 61.8% of 0.8494/0.9324 / weekly cloud top).
Initial reversal signal needs more evidence for confirmation, with strong bullish signal expected on break above 0.8917/24 (falling 20DMA / Fibo 38.2% of 0.9148/0.8786).
Daily momentum is still weak but reversal signal is developing on weekly chart (momentum and stochastic turn north and about to reverse from negative territory and weekly bullish engulfing if forming).
Converging 10/200DMA’s mark strong supports which need to hold and keep recovery attempts alive.
Return below 200DMA would weaken near-term structure and risk continuation of larger downtrend on firm break below 0.8800 support zone.
Res: 0.8900; 0.8917; 0.8960; 0.8974
Sup: 0.8844; 0.8834; 0.8808; 0.8792