The pair hit fresh high at 0.9142 today (the highest since early Oct 2016) but was unable to hold gains and dipped below 0.9100 handle after upbeat UK jobs data boosted pound.
Overall bulls remain firmly in play for now, underpinned by rising 10SMA at 0.9063 (initial support) and ascending 4-hr cloud (spanned between 0.9041 and 0.9000, with lower boundary being reinforced by rising 20SMA) which is expected to contain dips before larger bulls from higher base at 0.8300 zone resume.
However, deeper pullback cannot be ruled out as daily RSI emerges from overbought territory and shows a plenty of space at the downside.
Violation of 0.9000 handle would risk extension towards 0.8942 (rising daily Kijun-sen) and 0.8890 (27 July trough).
Res: 0.9100, 0.9142, 0.9207, 0.9244
Sup: 0.9082, 0.9063, 0.9041, 0.9000
