The pair extends strong recovery into second straight day as the greenback gets boosted by safe-haven buying on renewed concerns about growing tensions on US-China trade conflict.
Fresh bulls nearly fully reversed 112.88/111.37 bear-leg, which was contained by daily cloud on Friday.
Rising and thickening cloud continues to underpin recovery, along with growing bullish momentum and daily MA’s turning to positive setup.
Break above pivotal barriers at 112.88 (22 Oct high) and 112.95 (50% of 114.54/111.37 descend/daily Kijun-sen) would signal extension of recovery rally from last Friday’s 111.37 spike low and would expose next pivot at 113.33 (Fibo 61.8% of 114.54/111.37).
Broken 10SMA marks support at 112.43, which is expected to keep the downside protected. Only return below 55SMA (112.05) would sour near-term sentiment and shift focus lower.
Res: 112.95, 113.33, 113.79, 114.10
Sup: 112.70, 112.43, 112.05, 111.62
