Yesterday Citi were watching for a break of the April resistance line and the 200 dma between 0.9145/50. The failure to close above old resistance at 0.9080/86 has them now looking south towards the 55 dma at 0.8941. A move down through there and 0.8925 will strengthen the possibility of a double top in the 0.9130’s
I say I like the cut of their jib and can see a case for a test lower too, as I noted yesterday. We’ve also fallen through the 100 dma and have been using that as resistance so far today. We briefly had a dip below 0.9000 to 0.8995 which was soon soaked up. The 0.9000 is a fairly decent short term level but in the current environment we can’t rule out a move to those lower areas down at 0.8925/40.
