The pair maintains positive tone on Tuesday but shows hesitation at psychological 112.00 barrier and more significant 112.20/31 (Fibo 76.4% of 114.54/104.59 / 200WMA).
Optimism over US/China trade talks keeps the pair well supported, but traders look for more evidence, on further positive news that would inflate pair for eventual break through 112.20/31 pivots and trigger stops above.
Bulls would then look for 113.00+ extension, as sustained break higher would further accelerate strong four-week uptrend.
Scenario is supported by recent break above 200SMA (the first break after 26 Dec) which generated strong bullish signal.
Massive hourly cloud (spanned between 111.87 and 111.36) underpins, as cloud top holds today’s action.
Bullish bias is expected to remain as long as key supports, converged 100/200SMA’s (111.41/34) hold.
Res: 112.07, 112.20, 112.31, 112.60
Sup: 111.89, 111.41, 111.34, 111.17
