Bulls consolidate after strong rally; psychological 110 barrier comes in focus
The pair consolidates below new multi-month high at 109.60, posted on Wednesday after 0.5% advance (the biggest one-day rally in November).
The greenback rallied after upbeat US data on Wednesday and strong bullish acceleration resulted in close above key barriers at 109.36 (Fibo 61.8% of 112.40/104.44) and 109.48 (7 Nov former recovery high).
The latest news of US support to Hong Kong protests that also threatens of complicating situation in US/China trade talks, prompted investors into safe-havens and pushed dollar lower.
Dips were so far shallow and contained by broken Fibo barrier (106.36), keeping bulls intact.
Psychological 110.00 barrier comes in focus, but bulls may hold in extended consolidation before resuming, due to thin market in US session on Thanksgiving holiday and overbought daily stochastic.
Solid bids lay at 109.30/15 zone, guarding significant support at 108.92 (200DMA), loss of which will be bearish.
Res: 109.60; 110.00; 110.52; 110.67
Sup: 109.36; 109.15; 108.92; 108.78