The pair remains bid on Tuesday and probes above key barriers at 111.61/75 (daily cloud top / Fibo 61.8% of 114.49/107.31 descend), in extension of strong rally in past two days.
Sustained break here is needed to generate strong bullish signal for further advance and test of 200SMA at 112.23.
Another bullish signal came from yesterday’s close above weekly cloud top (111.21) which underpins today’s action.
However, bulls may show hesitation before firm break above 111.61/75 pivots, as strongly overbought slow stochastic on daily chart warns, but so far without clearer bearish signal.
Downticks should ideally stay above 111.00 support zone (Monday’s low / broken 100SMA) to keep immediate bulls intact.
Otherwise, deeper pullback could be anticipated. Key support lies at 110.75 )daily cloud base / 55SMA) and sustained break here would generate stronger reversal signal.
Res: 111.75, 111.87, 112.23, 112.80
Sup: 111.36, 111.21, 111.00, 110.75
