The cross advanced on stronger Euro, pulled by fresh advance of pound and weaker yen on strong sell-off in Asian emerging markets.
Extension of Monday’s strong rally which formed bullish outside day and signaled further upside, stalled on approach to key barrier at 130.00 (top of thick daily cloud / psychological level), despite upbeat German / EU ZEW data, with subsequent pullback bringing the price back to cloud’s mid-point at to 129 zone.
Fresh advance lacked momentum for eventual break above the cloud, as 14-d momentum continues to trend lower and approaches the border of negative territory, while daily MA’s are in mixed setup.
Close above cracked daily Tenkan-sen (129.36) is seen as minimum requirement to keep in play bullish bias for renewed attempt at cloud top.
Otherwise, risk of renewed attack at daily cloud base (128.30), after attempts on Fri/Mon failed, could be likely near-term scenario.
Res: 129.36, 129.82, 130.00, 130.86
Sup: 128.77, 128.30, 127.90, 127.35
