The pair broke above previous high at 1.3046 (29 May) on today’s strong rally which registered 1% rise until now.
Strong bullish mode started from early European trading, with downbeat Canada’s Q1 labor productivity data (-0.3% vs 0.3% f/c) adding pressure on Lonnie, while stronger than expected US ISM May services PMI 56.8 vs 55.7 f/c) further accelerated the greenback.
The pair is on track for the first close above psychological 1.30 barrier since 29 May, while daily close above former high at 1.3046 would add to strong bullish sentiment and open way for test of key med-term barriers at 1.3124/31 (19 Mar high/Fibo 61.8% of 1.3793/1.2061 fall).
The notion is supported by daily MA which returned to full bullish setup while strong bullish momentum is building.
Today’s rally shows initial signs of fatigue on hourly chart, as profit-taking after 150-pips rally could push the price lower.
Broken 1.30 level now offers support, while deeper dips should be contained by broken weekly cloud top (1.2927).
Res: 1.3066; 1.3100; 1.3124; 1.3131
Sup: 1.3000; 1.2964; 1.2946; 1.2927
