Bulls may take a breather under 107 zone before resuming
The pair maintains firm bullish tone for the sixth straight day and hit new multi-month high in early Tuesday’s trading, driven by rising demand for the US dollar.
Bulls pressure resistances at 107 zone, consisting of mid-Aug high (106.94), Fibo 50% of 111.71/102.59 (107.15) and 100WMA (107.22), violation of which would open way for 108+ extension.
Daily studies show very strong bullish momentum, with double golden-cross (10/200 and 20/200DMA’s) underpinning the action, but overbought stochastic and RSI warn that bulls may pause here for consolidation.
Dips should be ideally contained above former high at 106.22 (17 Feb), but near-term action is expected to keep bullish bias above rising 10DMA (105.94).
Res: 106.94; 107.22; 107.52; 108.00
Sup: 106.69; 106.43; 106.22; 105.94