The pair remains in red on Wednesday and looks for retest of 112.00 support (Tuesday’s low/Fibo 23.6% of 107.31/113.43 rally) where Tuesday’s attempts lower were contained by rising 20SMA. Long-tailed daily candle that was formed on Tuesday signals strong support at 112.00. Today’s action was so far held by rising 20SMA (currently at 112.18), but negative tone is prevailing on near-term studies and keeps the downside at risk. Clear break below key supports at 112.00 and 111.84 (200SMA) is needed for stronger bearish signal which would open way for extension towards daily cloud top at 111.37 and Fibo 38.2% at 111.09 which mark next pivotal supports. Broken 10SMA (currently at 112.60) continues to cap upside attempts and marks the upper pivot. From the fundamental side, the US dollar came under pressure on concerns about possible stall of President Trump’s Tax plan, with eyes turned towards the release of the minutes of Fed’s September meeting, due later today. Markets are expecting the US Central Bank to raise interest rates once more this year as the Fed indicated in the last policy meeting. Further signals about rate hike in December from today’s FOMC meeting minutes would offer fresh boost the greenback.
Res: 112.60, 112.82, 113.25, 113.43
Sup: 112.18, 112.00, 111.84, 111.47
