The pair jumped on positive news after US President Trump said he expects to sign a significant part of the trade deal with China ahead of schedule that signals improvement in trade talks.
Fresh strength pressures key 109 resistance zone (n/t congestion high at 108.94 and 200DMA at 109.05) break of which would signal continuation of broader recovery from 104.44 (26 Aug low) towards 109.31/36 (1 Aug high/Fibo 61.8% of 112.40/104.44 descend) and 109.57 (daily cloud top) in extension.
Daily studies maintain strong bullish momentum, with MA’s in positive configuration, improved sentiment and last week’s bullish close (after previous week’s Doji with long upper shadow), together underpinning the action.
Failure to break 200DMA (as traders are cautious ahead of FOMC on Wednesday) would signal extended range trading, with initial support at 108.66 (rising 10DMA) and recent range floor (108.25), break of which would soften near-term tone.
Res: 109.05; 109.36; 109.57; 110.00
Sup: 108.80; 108.66; 108.25; 108.09
