Strong rally on Monday has fully reversed 111.78/110.94 pullback and managed to close marginally above daily cloud/100SMA barriers. Today’s probe above 112.00 handle was so far short-lived, as strong offers lay at this zone. However, current easing is seen as consolidation ahead of fresh attempts higher, as daily MA’s in strong bullish setup continue to underpin. Bulls need sustained break and close above daily cloud (which is currently spanned between 111.65 and 111.82) as well as break above 112.24 (Fibo 61.8% of 114.36/108.80) to generate strong bullish signal for resumption of recovery rally from 108.80 (14 June low). Session low/lower 20d Bollinger band at 111.48 marks solid support, guarding a cluster of MA’s between 111.17 and 110.70. Speech of Fed’s chair Janet Yellen is due later today and will be closely watched for firmer signals of timing of Fed’s next rate hike.
Res: 111.82, 112.07, 112.24, 112.40
Sup: 111.48, 111.33, 111.17, 110.91
