Bulls eye 200SMA but consolidation may precede final break
Bulls fully regained control after shallow pullback and pressure last Friday’s 2 ½ month high / 200WMA (1.1347), with key barriers at 1.1364 (200SMA) and 1.1377 (Fibo 38.2% of 1.1815/1.1107) being in focus, as weak dollar adds to bullish outlook.
Overbought daily stochastic and weaker momentum warn that bulls may show hesitation at these levels and price adjustment may precede final break higher.
Broken bear-trendline offers solid support at 1.1299 and guards key supports at 1.1279/72 (daily cloud top / 100SMA).
US inflation data are due later today and may provide fresh signals.
Res: 1.1347; 1.1364; 1.1377; 1.1400
Sup: 1.1318; 1.1299; 1.1279; 1.1259