The pair pulled back from daily high at 110.71, posted during European trading and hit US session low at 110.32, exposing key supports at 110.22/16 (hourly cloud top / 200SMA).
The move is seen as positioning ahead of Fed, as traders expect hawkist tone from Fed chief Powell and looking for better buying levels, with dips expected to hold above 200SMA and keep bullish bias.
Firmly bullish daily techs and strong momentum are pointing higher. Current wave C eyes its FE 76.4% and 100% levels at 110.82 and 111.32 respectively, with break above former high of 21 May at 111.39, to signal extension of lager recovery rally from 104.63 (2018 low, posted on 26 Mar).
Dovish tone from Fed, on the other side, would risk extension through 200SMA, which would weaken near-term structure.
Res: 110.82; 111.00; 111.32; 111.88
Sup: 110.32; 110.16, 109.86; 109.75