Strong three-day recovery rally is pausing on Tuesday and consolidating under three-week highs at 0.7149 (Mon/Tue). Bulls are taking a breather ahead of strong barriers at 0.7166/85 zone (30/55/100SMA’s / daily cloud base) as slow stochastic is strongly overbought on daily chart, but overall sentiment remains positive on hopes of resolution of US/China trade dispute, as well as weaker greenback on fears that Fed is on track to pause its rate hike cycle. Near-term action is for now held by broken 20SMA (0.7110) and underpinned by thick rising hourly cloud (cloud top lays at 0.7108), which should ideally contain, however, deeper correction cannot be ruled out. Daily 10SMA turned north and marks next solid support at 0.7060, with deeper dips expected to find ground above 0.6980 (Fibo 38.2% of 0.6706/0.7149 recovery leg). Only firm break here would neutralize bulls.
Res: 0.7149, 0.7166, 0.7185, 0.7222
Sup: 0.7110, 0.7060, 0.7000, 0.6980
