The pair establishes above 111 level in early Monday’s trading after the US announced that US-China trade war is on hold. Tensions over bigger trade conflicts which shook markets in past couple of months eased, boosting risk sentiment which pushed the greenback to new four-month highs against yen. Fresh bullish acceleration on Monday marks an extension of strong rally previous week (the third biggest weekly rally this year) and eyes target at 111.96 (weekly cloud base), with break above 112 handle to expose 112.35 (Fibo 76.4% of 114.73/104.63 descend). Today’s rally broke above pivotal 110.87 barrier (Fibo 61.8% of 114.73/104.63), which now acts as initial support, with daily close above to confirm strong bullish signal. Rising 10SMA approaches 200SMA in attempts to form golden cross and reinforce strong bullish stance. Corrective downticks on overbought daily techs should be ideally contained at 110.87/60 zone (broken Fibo barrier/last Friday’s low), while extended correction is expected to hold above key supports at 110.20/16 (bull-trendline off 104.63 low / broken 200SMA).
Res: 111.48, 111.96, 112.05, 112.35
Sup: 111.00, 110.87, 110.60, 110.15
