Fresh risk appetite drives the pair above 108 barrier
The pair extends advance above 108 barrier on Friday, fueled by fresh risk appetite on optimistic news from US/China trade talks.
Bulls eye key barriers at 108.47 (18/19 Sep double-top / 1 Oct spike high / near 50% retracement of larger 112.40/104.44 descend and weekly Kijun-sen), break of which would spark fresh bullish acceleration.
Daily techs maintain strong bullish momentum and underpin the action, as the pair is on track for strong weekly gains (1.4% until now) and formation of bullish engulfing pattern on weekly chart that would generate strong bullish signal for further advance.
Broken 108 barrier marks initial support, with 20DMA (107.65) expected to contain dips and keep bulls in play.
The outcome of top-level US/China trade talks is expected to play key role in pair’s near-term action.
Res: 108.18; 108.47; 108.93; 109.06
Sup: 108.00; 107.65; 107.57; 107.46