Fresh bulls, underpinned by rally in JPY crosses probe again through key barriers at 110.00/22 zone (psychological/weekly cloud top/previous upside rejections/Fibo 61.8% of 113.70/104.59) on Monday.
Stronger dollar across the board adds to pair’s bullish stance in early Monday’s trading, with the action being supported by strengthening daily momentum and underpinned by north-heading 10/20SMA (109.62/109.50).
Eventual close above 110.22 Fibo barrier would generate signal for continuation of bull-leg from 104.54 (3 Jan spike low) towards barriers at 110.75 (55SMA) and more significant 200SMA (111.25).
Conversely, another failure to break higher would signal prolonged directionless mode, but bullish bias would remain while the price holds above 10/20SMA’s.
Res: 110.28, 110.75, 111.25, 111.55
Sup: 109.93, 109.62, 109.50, 109.18