Near-term action remains directionless and holding within the range which extends into fourth consecutive day.
Friday’s long-legged Doji, left after turbulent post-NFP action, contributes to sideways mode, along with mixed daily technical studies.
Moving averages are setup, though converging 55/200DMA’s are on track to generate bullish signal on potential formation of a golden cross.
Also, 14-d momentum broke into positive territory, the action remains underpinned by thick daily cloud and weekly bear-trap under 1.0931 Fibo support, adds to growing bullish signals.
However, signals need confirmation on lift above 1.10 zone (range top / psychological / daily Tenkan-sen) to confirm a higher base and shift near-term focus higher.
On the other hand, violation of range floor (1.0876) would weaken near-term structure and generate initial signal of continuation of larger downtrend from 1.1139 (Dec 28 peak).
Res: 1.0980; 1.1008; 1.1041; 1.1084.
Sup: 1.0914; 1.0876; 1.0850; 1.0821.
