The pair rallied around 60 pips on Monday, bringing bulls back to play after four consecutive descending long-legged daily candles last week, which signaled hesitation of broader bulls ahead of daily cloud barrier. Thin daily cloud which twists on Tuesday continued to attract for fresh attacks and today’s rally came just ticks ahead of it. Plethora of strong supports provided by daily MA’s (which also made a multiple bull-crosses and contained last week’s easing) continues to underpin the action for final break above daily cloud / 100 SMA pivots at 111.80 zone and further retracement of 114.36/108.80 descend. Corrective easing from today’s high at 111.71 should ideally find support at 111.48 (Fibo 38.2% of today’s 111.11/71 rally) with extended dips to be contained at 111.34 (hourly cloud top) to keep fresh near-term bulls in play.
Res: 111.71, 111.80, 112.00, 112.25
Sup: 111.57, 111.48, 111.34, 111.24
