Bears tightened grip on Tuesday after being congested in past three days, sending the pair to five-week low and signaling an extension of corrective pullback from new 20-year high (131.34).

Profit-taking after strong bullish acceleration in past two months (the pair was up 13% in Mar/Apr) contributed to the recent easing, also signaled by a double-top pattern on daily chart.

Falling daily Tenkan-sen crossed below Kijun-sen, adding to negative signals, generated on break of a double-Fibo supports at 127.40 zone (23.6% of 114..64/134.34 / 38.2% of 121.27/131.34 upleg) and rising bearish momentum.

Bears eye key supports at 114.96/77 (Fibo 38.2% of 114.64/131.34/ top of rising and thickening daily cloud0 where stronger headwinds could be expected, while break here would sideline larger bulls and open way for stronger correction.

Near-term bias is expected to remain with bears while the price action stays below broken Fibo support at 127.40.

Res: 126.94; 127.02; 127.40; 128.22
Sup: 126.31; 125.23; 124.96; 124.77

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

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