“¢ The pair finally broke down of its late Asian session consolidation phase and retreated farther from Friday’s near two-month tops, and the 112.00 handle, to test 50-hour SMA.
“¢ The prevalent risk-off mood, led by renewed US-China trade war fears, coupled with some USD selling were seen as key factors behind the latest leg of fall in the last hour.
“¢ Despite a combination of negative factors, the downfall remained rather limited and the momentum, so far, has been confined within Friday’s broader trading range.
“¢ Technical indicators on the 1-hourly chart have started losing positive momentum and thus, increase prospects for some additional intraday weakness amid escalating trade tensions.
“¢ However, a convincing move beyond 112.15 supply zone might negate any negative outlook and should pave the way for an extension of the last week’s positive momentum.
Spot Rate: 111.93
Daily High: 112.12
Trend: Bearish below 112.15 zone
Resistance
R1: 112.17 (near 2-month tops set on Friday)
R2: 112.55 (horizontal zone)
R3: 112.88 (July 17 daily closing high)
Support
S1: 111.64 (ascending trend-line on H1)
S2: 111.40 (200-period SMA H1)
S3: 111.00 (round figure mark)
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