Bulls regained ground after being shaken by risk-off mode; Fed is in focus
The pair returned to 108 zone as bulls regained traction after immediate reaction on Saudi oil installations that sparked risk aversion and sent dollar to 107.47 in Asian session, with dip being contained by broken Fibo barrier at 107.45 (61.8% of 109.31/104.44).
Fresh advance sidelined risk of deeper pullback after bulls showed hesitation, presented by double-Doji on Thu/Fri.
Bulls pressure again falling 100DMA (108.07) after double-failure to make clear break here and Fibo 76.4% (108.16) and signal bullish continuation.
Strong bullish momentum and today’s formation of 10/55DMA bull-cross support the action, but south-turning stochastic in overbought territory, may reduce bull’s power and keep the pair in extended consolidation, awaiting stronger signals from results of Fed’s policy meeting which ends on Wednesday.
Res: 108.07; 108.25; 108.42; 108.95
Sup: 107.45; 107.21; 107.00; 106.71