Bullish bias above 200SMA
The greenback accelerated higher on renewed risk-on mode as trade war fears eased and hit session high at 110.38 in early US session trading.
US trade balance gap narrowed in May and US capital goods unexpectedly dipped but previous month’s figure was revised higher, signaling moderate growth and offering fresh boost to dollar.
Fresh rally eventually broke above key barrier at 110.20 (converged 200/10SMA’s) after downside attempts earlier today were contained by the top of thick daily cloud which proved to be strong support.
Higher base is forming on daily chart after double downside rejection on Mon/Tue and today’s acceleration higher.
Bulls need close above 200SMA for confirmation, as north-heading daily indicators and MA’s turning into full bullish setup support the notion and thick daily cloud continues to underpin.
Fresh recovery rally also broke above 110.31 pivot (Fibo 61.8% of 110.90/109.36 bear-leg) which opens barriers at 110.54 / 75 (Fibo 76.4% / 21 June spike high) and could stretch towards key near-term barrier at 110.90 (15 Jun high).
Broken 200SMA now acts as solid support at 110.20, while psychological 110.00 support, reinforced by 30SMA marks lower pivot.
Res: 110.54; 110.75; 110.90; 111.39
Sup: 110.20; 110.00; 109.70; 109.51