Bulls are taking a breather on Tuesday, following two days of strong rally on softer dollar, after failing to take out barriers at $1194/95 (falling 10SMA / Fibo 61.8% of $1217/$1160 bear-leg). North-heading momentum and slow stochastic are supportive, but strong bearish setup of daily MA’s offsets positive signals.
Failure at 10SMA and close below daily low at $1189 would generate initial signal that recovery rally is running out of steam, while extension and close below 5SMA $1182) would signal reversal.
Bullish scenario requires close above 10SMA as initial bullish signal for recovery extension towards psychological $1200 barrier at falling 20SMA at $1205.
Res: 1194; 1200; 1205; 1214
Sup: 1189; 1182; 1171; 1160
