The pair holds in red on Thursday and eases further from new high at 114.64 (the highest since 06 Nov 2017), pressuring initial support at 114.00 (round-figure/rising 5SMA. Deeper pullback cannot be ruled out as slow stochastic is reversing from overbought territory and 14-d momentum turned south after forming bearish divergence and bear-cross on daily chart.
Corrective action is seen as positioning for fresh advance, as overall bullish structure favors dip-buying scenario.
Bulls will remain comfortable while above broken weekly 200SMA (113.18), where extended dips are expected to find ground.
The dollar remains well supported by recent upbeat US data which could push Fed towards more aggressive approach to monetary policy in order to prevent overheating of the US economy.
Also, US and Japan’s interest rates are expected to further diverge and widen the gap, which could be another supportive factor to the greenback.
Bull keep in focus next target at 114.73 (06 Nov 2017 high), with extension above psychological 115 barrier and attack at Fibo barrier at 115.35 (76.4% of 118.66/104.63 descend), being in near-term agenda.
Res: 114.54; 114.73; 115.00; 115.35
Sup: 114.00; 113.42; 113.30; 113.18
