The pair bounced above 112.00 barrier as risk-off mode over North Korea fades and downside attempts were repeatedly contained by strong support provided by top of thickening daily cloud (111.54) reinforced by rising 10SMA. Near-term techs regained bullish momentum on fresh rally, with probe above important 112.00 resistance zone expected to generate fresh bullish signal on firm break above 112.12/23 pivots (200SMA/Fibo 61.8% of 112.71/111.47 pullback). Situation on daily chart remains constructive while cloud top keeps the downside protected, for renewed attack at 112.80 target (Fibo 76.4% of 114.49/107.31 descend), as previous attempt stalled just ticks below the target. Today’s speech from Fed Chief Yellen is expected to provide more clues about dollar’s near-term direction. Firmer signals about rate hike in December would accelerate the greenback above 113.00 handle and expose targets at 113.57 (14 July lower top) and 114.00 (round-figure). On the other side, the dollar could come under increased pressure and probe again below cloud top if Yellen’s tone will be dovish.
Res: 112.52; 112.80; 113.00; 113.57
Sup: 111.75; 111.54; 111.13; 110.65
