Fresh upside attempts need close above 10SMA to signal extension
The dollar maintained positive tone during European and early US trading on Tuesday and probed again through falling 10SMA (108.58) after Monday’s attempts above multi-day congestion failed to close above and generate firmer bullish signal.
Sidelined fears about trade war escalation after US and Mexico reached a deal, boosted the US dollar, but recovery sees close above 10SMA as minimum requirement to continue.
Next strong barriers at 108.90 zone (double-Fibo / daily Tenkan-sen) are exposed and sustained break here would generate bullish signal for stronger recovery.
On the other side, persisting fears of escalation of trade conflict between US and China, but the problem might be on hold until G20 meeting later this month and signs of Fed rate cut, may limit dollar’s gains.
Repeated close below 10SMA would weaken near-term structure and keep in play risk of retesting key support at 107.81 (5 June low).
Res: 108.66; 108.90; 109.24; 109.58
Sup: 108.36; 108.02; 107.81; 107.57