The pair extended strong rally from Monday and came ticks ahead strong barriers at 111.80/84 (daily cloud base / 100SMA) on Tuesday. The dollar was boosted by comments from Fed’s Dudley and Monday’s strong rally broke above pivotal barriers at 110.93 (Fibo 38.2% of 114.36/108.80 downleg) and 111.29 (daily Kijun-sen), ending day in long bullish candle and generating strong bullish signal.
Break above 111.80/84 barriers would extend rally towards next important resistances at 112.20/24 (daily cloud top / Fibo 61.8% of 114.36/108.80).
Bulls may take a breather before probing into cloud as strongly overbought slow stochastic on daily chart suggests correction.
Session low at 111.48 marks immediate support, followed by broken 30 SMA at 111.28 and broken 55SMA at 111.02 which is expected to contain extended dips.
Res: 111.84, 112.12, 112.24, 113.05
Sup: 111.48, 111.28, 111.02, 110.67
