The pair regained traction on Monday and edged higher after dips were repeatedly contained by 20DMA (109.53).
Friday’s action closed in red but downside attempts were strongly rejected, leaving long-tailed daily candle and suggesting that the downside is limited.
Larger bulls from 108.31 (31 Jan/3Fed double-bottom) remain intact (following steep four-day rally) and consolidating before fresh attempt through 110 barrier which repeatedly capped the action last week.
Strongly overbought stochastic on daily chart warns of extended consolidation and possible deeper dips, which need to stay above 109.36 (Fibo 38.2% of 108.31/110.02 rally) to keep near-term bias with bulls.
Eventual break of psychological 110 barrier would open 110.29 (17 Jan high) and 110.52 (Fibo 76.4% of 112.40/104.44 fall).
Caution on loss of 109.36 handle as this would put bulls on hold for deeper pullback.
Res: 109.87, 110.00, 110.29, 110.52
Sup: 109.61, 109.53, 109.36, 109.16
