Strong indecision, signaled by Wednesday’s spinning top and subsequent Doji on Thursday, so far did not result in more significant weakness, as dips hold above broken 100SMA (1.3000).
Near-term price action remains supported by strengthening momentum, which attempts to break into positive territory and daily MA’s holding in bullish setup.
On the other side, daily stochastic reverses from overbought territory and weighs.
Positive signals come from weekly chart as the pair is on track for strong bullish weekly close and completion of hammer reversal pattern that underpins the action.
Bullish bias is expected to remain intact while the price holds above 200SMA, with initial positive signal expected on weekly close above it.
Weekly close above cracked 1.3047 Fibo barrier (61.8% of 1.3217/1.2772) would reinforce bullish signals and keep focus at 1.3217 peak (25 Jan).
Conversely, break and close below 200SMA on Friday would weaken near-term structure and risk deeper pullback.
Res: 1.3047, 1.3094, 1.3112, 1.3160
Sup: 1.3000, 1.2977, 1.2936, 1.2882
