Strong bounce from daily cloud base sidelines downside risk
The dollar regained traction and jumps on Tuesday after previous day’s fall was contained by strong supports at 107.30/23 (daily cloud base / 20DMA).
Fresh advance surges through a cluster of daily MA’s (10/55/30), approaching 50% of 108.16/107.25 bear-leg (107.70), with today’s strong bullish close and preferably above 107.70, to generate reversal signal and confirm higher base at 107.25.
Bullish momentum is rising on daily chart and supporting the action, with repeated close above cloud base to sideline risk of deeper fall.
Res: 107.60; 107.80; 107.94; 108.16
Sup: 107.51; 107.25; 107.11; 106.87