The cross rebounds strongly on Thursday after larger bears were rejected on probe through key supports at 0.8865 (3 Sep/9 June lows).
Fresh advance is about to complete reversal pattern on daily chart after Wednesday’s action ended in long-tailed Doji.
Bulls returned above 200DMA (0.8925) and need daily close above here to generate initial bullish signal.
Next pivotal barriers at 0.8970/73 (Fibo 38.2% of 0.9148/0.8860/falling 10DMA) are under pressure and firm break above these barriers would add to reversal signals.
Technical studies show slight improvement as stochastic reversed from oversold zone and RSI heads north, but momentum remains deeply in negative territory and warns of recovery stall.
Dip-buying above 200DMA is favored, but caution on failure to clear 10DMA which would keep risk of fresh weakness in play.
Res: 0.8973, 0.9000, 0.9017, 0.9038
Sup: 0.8944, 0.8925, 0.8890, 0.8865
Written by Admin
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