Recovery accelerates after upbeat US data and pressures key Fibo barrier

On Nov 27, 2019

The pair rallies for the fourth straight day after forming the base at 5.6848 (20/21 Nov lows, also low of 4 Nov).
Strong recovery generated several bullish signals on break above the cluster of daily MA’s and penetration of daily cloud.
Today’s bullish extension pressures important Fibo resistance at 5.7814 (38.2% of 5.9378/5.6848), break of which is needed to generate initial reversal signal and confirm double-bottom (5.6848).
Daily MA’s in bullish setup and rising positive momentum support the advance.
The greenback was also supported by upbeat US data (GDP Q3 2.1% vs 1.9% f/c; durable goods orders Oct 0.6% vs 0.2% f/c; weekly jobless claims 213K vs 223K f/c) as well as fresh risk mode on trade deal hopes, which boosted bullish sentiment.
Daily stochastic continues to trend higher in overbought territory and warning that bulls may take a breather in coming sessions.
Broken daily cloud base offers immediate support at 5.7626, followed by converged 30/55DMA’s at 5.7483.

Res: 5.7814; 5.7944; 5.8000; 5.8092
Sup: 5.7626; 5.7522; 5.7483; 5.7371