The pair is consolidating around 114.00 handle following Tuesday’s strong rally that peaked at 114.31and closed above 113.75 pivot (Fibo 76.4% of 115.49/108.11 descend.
Dips from 114.31 peak were so far shallow and found support at 113.60, as overall picture remains firmly bullish and favors further upside for test of next strong barrier at 114.62 (Fibo 61.8% of 118.65/108.11 descend), break of which and weekly close above it would add to existing bullish bias.
Caution on overbought daily RSI which is turning lower and bearish divergence on overbought slow stochastic that may signal stronger correction.
Extension below 113.46 (Fibo 38.2% of 112.07/114.31 upleg) would generate stronger bearish signal and risk test of 100SMA (113.06).
Extended dips should find support above daily clod top (112.79) to keep overall bullish structure intact.
Res: 114.11, 114.31, 114.62, 114.87
Sup: 113.60, 113.46, 113.06, 112.79
