The pair holds in the middle of thick daily cloud on Monday, following swings up and down which resulted in strong rejections on both cloud boundaries.
This suggest the price may hold in extended range within the cloud, which remains wide and twists in nearly two weeks.
Directionless mode is supported by neutral daily techs as well as double weekly Doji.
Converged 10/55SMA’s mark immediate barrier at 111.17, sustained break of which shift focus towards key barrier at 111.55 (daily cloud top).
Daily 20SMA marks initial support (110.97), loss of which would expose cloud base (110.64) which marks pivotal support (reinforced by rising 100SMA, currently at 110.54).
Focus turns towards US CPI and retail sales data, due later this week, which could provide stronger direction signals.
Res: 111.17, 111.55, 111.75, 111.83
Sup: 110.97, 110.64, 110.54, 110.38
