The pair holds in sideways mode for the third straight day, after rally from 109.77 (21 Aug low) failed to break above daily cloud top (111.62). Strengthening momentum maintains bullish bias as the downside is protected by converged 20/55SMA’s, keeping cloud top in focus.
Eventual break above cloud would signal continuation of recovery leg from 109.77, which needs confirmation on break above 111.87 (Fibo 61.8% of 113.17/109.77 descend).
Conversely, close below 20/55SMA’s would weaken near-term structure and risk completion of reversal pattern on daily chart that could lead to fresh weakness towards daily cloud base (110.64).
Res: 111.35, 111.62, 111.87, 112.15
Sup: 110.93, 110.77, 110.64, 110.19
