Bulls again lose traction on approach to key Fibo barrier
Strong three-day rally, sparked by fresh risk mode on trade optimism, approached recent three-month high at 109.28 (30 Oct) on Tuesday, following the strongest one-day rally since 25 Sep, which also resulted in daily close above 200DMA (109.02)
Bulls eye key Fibo barrier at 109.36 (Fibo 61.8% of 112.40/104.44), break of which would generate bullish signal for extension towards next strong resistance zone at 109.60/ (falling converged 55/100/200 DMA’s).
Rising daily bullish momentum underpin the action, as weekly cloud twist also attracts, with repeated close above 200DMA needed to confirm bullish stance.
Caution on daily stochastic ranging around overbought border and warning about further hesitation to clear 109.36 pivot.
Daily Tenkan-sen / Kijun-sen are in strong bullish configuration and Tenkan-sen (108.58) needs to hold extended dips and keep bulls in play.
Res: 109.28; 109.36; 109.57; 111.00
Sup: 109.18; 108.90; 108.58; 108.21