The pair moved lower on Thursday as traders took some profit from uninterrupted rally in past five days which accelerated on Thursday, resulting in daily gain of 0.5%. Signals that Fed remains on track for another rate hike in December keeps the dollar supported, as further interest rate divergence between the US and other major economies increases pressure on dollar’s major counterparts.
Thursday’s break and close above pivotal Fibo barrier at 113.80 (76.4% of 114.54/111.37 bear-leg) was bullish signal which opened way towards key barrier at 114.54 (04 Oct high). Bulls are likely to consolidate before final push higher.
Broken Fibo 76.4% barrier at 113.80 holds for now, with bullish signal expected on weekly close above, however, deeper pullback towards 113.33/22 (broken Fibo 61.8% / rising 10SMA) cannot be ruled out as slow stochastic is overbought on daily chart and momentum studies are weaker. Only close below 10SMA would put bulls on hold for deeper correction.
Res: 114.08, 114.54, 114.73, 115.50
Sup: 113.75, 113.59, 113.33, 113.22