Bulls are taking a breather after strong three-day recovery rally managed to close above pivotal Fibo barrier at 1.1444 (38.2% of 1.1815/1.1215) but was again failed to clearly break above 100SMA (1.1478).
Early Monday’s action is holding in red as the price eased to broken 1.1444 Fibo level, now acting as initial support, which guards pivotal supports at 1.1417/13 (Fibo 38.2% of 1.1309/1.1484 / daily 10SMA).
Current action could be seen as positioning ahead of fresh attempt at key 100 SMA / daily cloud top barriers (1.1478/1.1515).
Overall bullish daily techs and weaker dollar on concerns that the Fed would end its rate hike phase, due to signals of slowdown in the US economy growth, support the scenario.
Weak German / French data, released earlier this morning added to negative near-term tone, but focus is on Fed minutes of Dec meeting (due on Wednesday) and US CPI data (Friday) which are expected to give more hints about US central bank’s action in 2019.
Res: 1.1478, 1.1496, 1.1515, 1.1550
Sup: 1.1432, 1.1413, 1.1385, 1.1363
