Rally above daily cloud approaches key Fibo barrier / 200DMA
The pair jumped above thickening daily cloud on Tuesday and approaching pivotal barriers at 108.17/25 (Fibo 38.2% of 111.71/105.98 / 200DMA), with the action being boosted by fresh risk mode and exodus from safe havens.
Today’s extension above 55DMA (107.52) and former high at 107.76 (11 May) adds to positive signal, generated on Monday’s marginal close above cloud top.
Rising bullish momentum and daily MA’s in positive configuration (10/20DMA’s converged on track to form bull-cross) support scenario.
Clear break of 108.17/25 would spark stronger bullish acceleration and signal reversal that would open way recovery extension towards 108.85 (50% retracement) and 109.37 (6 Apr lower top of larger downtrend from 111.71, 24 Mar high).
Near-term action is expected to maintain bullish bias while holding above daily cloud top .
Res: 108.08; 108.17; 108.25; 108.85
Sup: 107.52; 107.32; 107.04; 106.70