The pair holds in firm bullish mode for the third straight day and extends recovery leg from 0.7141(17 Sep trough) to probe through falling 30SMA (0.7244) and pressure key Fibo barrier at 0.7256 (61.8% of 0.7362/0.7085 descend).
Fresh extension higher was supported by decision of China to boost Yuan, which triggered fresh demand for riskier assets.
Further extension of short-covering could be expected on sustained break above 0.7268 Fibo barrier, which would expose falling 55SMA (0.7317).
North-heading momentum is approaching the border of positive territory and daily MA’s turning into more bullish setup, supporting the advance.
Broken 20SMA (0.7214) and broken Fibo 38.2% resistance (0.7198) mark solid supports which are expected to hold and maintain bullish bias.
Res: 0.7254, 0.7268, 0.7317, 0.7362
Sup: 0.7233, 0.7214, 0.7198, 0.7169
