Bounce from daily low at 112.56, posted in early Europe, accelerated after upbeat US data and probes again above 113.00, for renewed attack at key 113.17/30 barriers (19 July high / Fibo 61.8% of 118.66/104.63 descend, reinforced by weekly 200SMA). Data released today showed that US economic growth in Q2 accelerated to the fastest pace in almost four years ( annualized Q2 4.2% vs 4.2% f/c) and durable goods orders surged 4.5% in Aug, heavily beating forecast at 1.9% and downward-revised July’s figure at -1.2%. US weekly jobless claims unexpectedly rose by 12K (202K previous week/208K f/c) but did little to offset positive impact from upbeat GDP and durables. The pair is on track for eventual break through 113.17/30 pivots after shallow dips were contained above rising 10SMA and fresh strength neutralized risk of further easing. Further improvement of bullish dollar’s sentiment on today’s strong numbers and after hawkish Fed on Wednesday, could result in stronger advance, as firm break above 113.17/30 pivots is expected to generate strong bullish signal. High of 12 Dec 2017 at 113.74 marks next significant barrier, with bulls capable on travelling towards next targets at 114.49/73 (July / Nov 2017 highs). Bullish daily techs remain supportive, however, overbought slow stochastic warns that bulls may show hesitation before clearly breaking above key resistance zone. Rising 10SMA remains key near-term support (112.50) which is expected to contain dips and keep bulls in play.
Res: 113.17; 113.30; 113.74; 114.00
Sup: 112.81; 112.50; 112.04; 111.88
