The pair stands at the back foot in early US trading and dipped to session low at 112.70 after bulls stalled on initial attempt above 113 handle. Overbought daily studies signaled easing which was helped by poor housing data released today. Housing starts fell sharply by 12.3% in June, undershooting forecast for 2.2% fall, while building permits slipped by 2.2% in June against forecasted rise by 2.2%. Risk of deeper pullback remains in play and extension below rising 5SMA (112.57) would generate negative signal for extension towards key support at 112.19 (16 July trough). Today’s close above 113 barrier is required to sideline pullback threats and maintain bullish bias.
Res: 113.13; 113.38; 113.63; 113.74
Sup: 112.70; 112.57; 112.19; 111.79
