Bulls extend through key Fibo barrier
Fresh bullish extension on Thursday after previous day’s narrow consolidation, firmly broke into daily cloud, took out Fibo barrier at 5.7531 (38.2% of 6.2445/5.4494 descend, also weekly cloud top) and cracked 100DMA (5.7881), after probing above July highs (5.7687 / 5.7845).
The greenback received fresh boost from Fed minutes which toned down expectations for more aggressive approach to rate cuts and underpinned by firmly bullish technical studies.
Steeply ascending daily momentum and multiple MA’s bull-crosses support the advance, which requires repeated close within thick daily cloud for initial bullish signal, which will be reinforced by close above 5.7531 Fibo barrier.
Continuation of rally above 100DMA would open 5.8470 (50% retracement) and expose daily cloud top (5.9137).
Overbought stochastic warns that bulls may slow for consolidation, which should be ideally contained by daily cloud base (5.7214).
Res: 5.7881; 5.8470; 5.9000; 5.9307
Sup: 5.7531; 5.7214; 5.7000; 5.6874