The eases below broken 200SMA in early European trading following narrow consolidation under new high at 110.45 in Asia.
Tuesday’s strong rally which resulted in eventual break and close above 200SMA was strong bullish signal.
Rally may take a breather before push through initial barrier at 110.48 (02 Feb high) and extension towards targets at 110.84/87 (27 Nov low / Fibo 61.8% of larger 114.73/104.63 fall).
Dips are expected to offer better buying opportunities and should find supports at 109.80 (bull-trendline off 104.63 low) and 104.50 (10SMA).
Caution on break below 10SMA which could trigger deeper pullback as formation of daily RSI / MACD bearish divergence warns.
Res: 110.48, 110.87, 111.00, 111.65
Sup: 110.00, 109.80, 109.50, 109.21
