Fresh bulls lack momentum for break through pivotal barriers
The pair opened with gap-higher on Monday, boosted by US/China deal and developments in talks with North Korea that boosted risk appetite.
Fresh bulls hit two-week high at 108.53, where falling 30SMA capped advance for now.
Improved sentiment underpins, however, risk of stall exists, as overall picture is bearish and lacks momentum, daily 10/20/30DMA’s are mixed, while stochastic is entering overbought zone.
Bulls require sustained break above 30 DMA and pivotal barriers at 108.80/92 (11 June lower top / Fibo 38.2% of 112.40/106.78) to generate reversal signal, with bullish bias expected above initial support at 108.07 (20DMA).
Break here would soften near-term structure, while extension and return below 10DMA (107.73) would generate bearish signal and shift near-term focus lower.
Res: 108.53; 108.80; 108.92; 109.60
Sup: 108.07; 107.73; 107.56; 107.39