The pair holds within tight consolidation and awaiting US jobs data for fresh signals after pullback from 110 resistance zone showed initial signs of stall. Thursday’s strong downside rejection left daily hammer, suggesting that easing might be over.
Rising bullish momentum on daily chart supports the notion, however signals from other indicators are mixed.
Daily MA’s remain in negative setup (20SMA offers immediate resistance at 109.03) while daily RSI and stochastic are flat, lacking clearer direction signal. US NFP data are expected to provide more clues, with weaker than expected figures likely to increase pressure on the dollar and risk acceleration towards strong supports 107.97/93 (daily Kijun-sen/Fibo 38.2% of 104.59/109.99 bull-leg.
Conversely, lift and close above a cluster of daily MA’s (between 109.03 and 109.36) would neutralize downside risk and re-expose pivotal 110 resistance.
Res: 109.03, 109.36, 109.74, 110.00
Sup: 108.72, 108.49, 107.93, 107.76
