The pair bounces on Thursday after suffering heavy losses in past two days with strong bearish acceleration on Wednesday on China’s US treasuries purchase story.
Wednesday fall was the biggest one-day fall since Nov 22 and hit 1 ½ month low at 111.26, exposing key short-term support at 110.83 (27 Nov low).
Daily techs turned into full bearish setup after recent fall and favor further weakness after consolidation.
Recovery attempts above initial barrier at 111.68 (200SMA0 were so far short-lived, with extended upticks expected to stay under former key supports at 112.00 zone, now reverted to resistance.
The pair is focusing on Friday’s release of US CPI and retail sales data which are expected to provide fresh signals.
Meanwhile, near-term action may stay within narrow consolidation.
Res: 111.68; 111.87; 112.00; 112.37
Sup: 111.26; 111.00; 110.83; 110.15