Upside rejection and subsequent fall warn that recovery is losing traction
Today’s strong upside rejection at 107.52 (100DMA and just under pivotal Fibo barrier at 107.58) and subsequent strong fall, weakened near-term structure.
Unsuccessful probe above 55DMA which capped four attempts in past few days, suggests that recovery from 106.63/66 double-bottom is running out of steam.
Rising bearish momentum and daily MA’s in negative setup, warn of further weakness, which could be triggered on break of 107.00.
Long shadows on daily candles in recent days also signals indecision that could keep near-term price action entrenched within current range.
Res: 107.40; 107.58; 107.80; 108.00
Sup: 107.00; 106.84; 106.68; 106.63