Bulls regain traction and return above 200DMA on fresh risk mode
Optimistic news on US/China trade issue prompted investors into riskier assets and pushed the pair back above 200DMA (109.02).
Wednesday’s close in red and below 200DMA put on hold hopes for eventual attack at key Fibo barrier at 109.36 (61.8% of 112.40/104.44 descend), but today’s strong downside rejection (108.64) and fresh probe above 109 zone improve near-term outlook.
Fresh hopes on trade deal add to bullish daily studies and keep near-term outlook positive.
Scenario requires close above 200DMA and violation of 109.36 Fibo barrier for confirmation and fresh bullish signal.
On the other side, return and repeated close below 200DMA would signal stall and risk fresh weakness, with loss of converged ascending 20/10DMA’s (108.65/73) to generate reversal signal.
Res: 109.18; 109.28; 109.36; 109.57
Sup: 108.73; 108.64; 108.42; 108.25