The pair is probing above strong 113.50 resistance zone on Wednesday after strong rally on Monday and consolidation on Tuesday were capped at 113.47/45.
Tuesday’s long-tailed candle signaled strong downside rejection (112.73) while Wednesday’s attempts lower were contained at 112.82, with subsequent rally signaling that bulls are firmly in play.
We need to see firm break above 113.50 barrier to signal bullish continuation and expose barriers at 114.00 (round-figure) and key 114.36 (10/11 May tops).
Caution on repeated failure at 113.50 as slow stochastic is strongly overbought and daily RSI remains in sideways mode under overbought area border.
Alternative scenario requires break below 112.82/73 (Wed/Tue lows) for initial bearish signal, while extension below rising 10SMA (currently at 112.38) would further weaken near-term structure and signal reversal.
Res: 113.58, 113.95, 114.36, 114.65
Sup: 113.05, 112.73, 112.64, 112.38
