Bulls consolidate under new 2-year high
The pair consolidates under new 2-year high at 1.0159, posted on Thursday in extension of strong four-day advance (the pair was up 1.4% on Mon/Thu rally).
Bulls took out psychological 1.0 barrier and former highs at 1.0128 (13 Nov 2018) and 1.0124 (7 Mar, former 2019 high), opening way towards targets at 1.0175 (50% retracement of 1.3284/0.7067); 1.0325 (2015 high) and 1.0343 (2017 high), which also mark the ceiling of multi-year congestion and break higher would generate stronger bullish signal.
Near-term price action is looking for corrective easing, as overbought daily RSI/Stochastic are turning lower and momentum crested, signaling adjustment.
On the other side, strong bullish setup on weekly chart and the pair being on track for the biggest weekly gains since the last week of Sep 2018, continues to strongly underpin the action and suggest limited corrective movements.
Dips are expected to offer better opportunities for market entry, with rising 10SMA (1.0057) and psychological 1.00 level, offering solid supports which are expected to contain extended dips.
Res: 1.0153; 1.0159; 1.0175; 1.0200
Sup: 1.0129; 1.0092; 1.0057; 1.0000