Slight bullish alignment but more work needed for eventual exit from week-long range
The pair holds slight bullish tone on Wednesday and attempts to break out from seven-day 107/108 zone range, where the action was stuck on safe-haven demand for both currencies.
Wednesday’s action is holding in the upper side of the range and probes above initial barrier provided by 10DMA (107.79), with eventual close above to provide initial bullish signal for test of more significant range top (108.08) reinforced by falling 20DMA.
Daily studies for now lack bullish momentum for such action. Strong pressure from constellation of daily MA’s (within 108.00/84 zone) and possibly magnetic daily cloud twist on Friday (106.70) warns of limited upside action, although cloud will rise and thicken after twist that could be supportive.
Broken Fibo 38.2% level offers immediate support at 107.69, but stronger bearish signal could be expected only on break below 106.92 double-bottom.
Res: 108.00; 108.30; 108.53; 108.84
Sup: 107.69; 107.28; 106.92; 106.44