The pair extended weakness to new five-week low at 110.29 on Thursday following strong fall previous day, sparked by Fed surprise on more dovish than expected stance which signaled no rate hikes in 2019 and lowered GDP forecast.
The greenback was sharply lower after announcement (the pair was down 0.68% for the day on Wed) and maintains weak tone today.
Completion of failure swing pattern on daily chart was negative signal, as Wednesday’s fall moved below plethora of converging daily MA’s and rising bearish momentum adds to negative tone.
Bears found footstep just ahead of 55SMA (110.18) and psychological 110 support, violation of which would expose pivotal Fibo support at 109.25 (38.2% of 104.59/112.13).
Fresh weakness undermined larger bulls, with sentiment being soured after Fed surprise that turns near-term bias in bearish mode.
Selling upticks is favored near-term mode, with MA barriers at 111.00/30 zone expected to cap and guar upper breakpoint at 111.44 (200SMA).
Only break here would neutralize bears.
Res: 110.74, 111.02, 111.30, 111.44
Sup: 110.18, 110.00, 109.64, 109.25
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