The pair bounced above 111.00 barrier on Thursday, on fresh dollar’s strength ahead of key US data today and Friday.
Two-day bearish acceleration was contained by strong support at 110.50 (Fibo 61.8% of 108.11/114.36 rally), with Wednesday’s action ending in long-legged Doji and signaling indecision.
However, current rally is so far seen as correction ahead of fresh attempts lower, as overall structure remains bearish and keeps the downside at risk.
Close below 110.50 pivot is needed to confirm bearish stance for attack at key supports at 110.26/23 (200SMA / 18 May low) and 110.00 (daily cloud top).
Strong barrier at 111.30 (daily Tenkan-sen) is expected to ideally cap correction and keep Tenkan-sen and Kijun-sen lines in bearish setup for fresh attempts lower.
Extended upticks would face another barrier at 111.50 (Fibo 61.8% of 112.12/110.48) break of which would signal reversal and expose next pivot at 111.80 (daily cloud top).
Res: 111.30, 111.50, 111.80, 112.12
Sup: 111.00, 110.62, 110.50, 110.23
