Fresh strength needs close above daily cloud to lessen downside risk
The pair regains traction and probes above daily cloud after being congested in past three days.
Rising and thickening daily cloud underpins the action which needs close above cloud top (113.29) to strengthen near-term structure generate initial signal of formation of a higher base at 112.50 zone.
The signal will be confirmed on rise and close above 114.02 (50% retracement of 115.51/112.53 pullback / converged daily Tenkan / Kijun-sen).
Mixed daily MA’s and strengthening negative momentum require caution, as the pair may remain within current congestion on failure to break above daily cloud that would keep the downside vulnerable, but slight positive alignment can be expected on close above broken Fibo support at 113.07 (38.2% of 109.11/115.51) after the pair registered three consecutive daily closes below this level.
Res: 113.67; 114.02; 114.37; 114.69
Sup: 113.07; 112.83; 112.53; 112.31