The pair is holding in extended consolidation between 100SMA (0.7556) and 200SMA (0.7527) which so far holds the downside after strong recovery rally stalled.
Overall bullish structure on daily chart could be dented on loss of 200SMA support, as slow stochastic is reversing from overbought territory and supporting the notion.
Plethora of strong supports provided by daily MA lies below and should limit extended corrective dips (converging 10/55SMA’s at 0.7485/85 should ideally contain.
Otherwise, prolonged consolidation could be expected while 200SMA holds, with near-term focus to shift higher.
Firm break above 100SMA is needed to signal extension of bull-leg from 0.7369 (02 June trough) towards next barriers at 0.7588 (Fibo 61.8% of 0.7749/0.7328) and 0.7610 (17 Apr high).
Extended directionless trading could be seen as likely near-term scenario ahead of FOMC policy meeting release which is expected to give stronger direction signals.
Res: 0.7555, 0.7588, 0.7610, 0.7664
Sup: 0.7527, 0.7495, 0.7485, 0.7468
