Fresh advance struggles at falling 10SMA
The dollar regained traction on positive news about US/Mexico trade conflict and opened with gap-higher on Monday, recovering all losses from last Friday, caused by disappointing US labor data.
Fresh advance probes above the top of five-day congestion , but faces strong headwinds from falling 10SMA (108.66) which so far capps upside attempts.
North-heading daily stochastic and RSI support but rising bearish momentum weighs and offsets positive signals.
Sustained break above 10SMA would signal further recovery and expose Fibo barriers at 108.90 (38.2% of 110.67/107.81) and 109.24 (50% retracement, reinforced by descending 20SMA).
Conversely, failure to clear 10SMA would keep the pair within extended range and would increase risk of fresh attempts at recent lows at 107.80 zone.
Res: 108.66; 108.90; 109.24; 109.58
Sup: 108.36; 108.02; 107.81; 107.57