So far in Asia, spot is quoted back around 1.2510 after testing light bids at the 1.2500 figure; the November 2 trough at 1.2525 is now offered as immediate resistance, then 1.2560 (100-hr EMA). A break below the figure would open scope for a 100-pip bearish run to 1.24.
However, technically speaking, price may be set for a bearish correction as Daily RSI touches the oversold 30 mark, but the path of least resistance remains South, and a ‘sell on rallies’ approach would be the most likely strategy employed in the medium term. Though, it is important to bear in mind that, historically, the 1.2500 psychological mark has attracted heavy bid orders, so bears should remain cautious from a technical standpoint.
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