The pair bounces from correction low at 110.84, where three-day fall found support.
Pullback from 111.82 high showed signs of stall just ahead of daily cloud top, as massive cloud continues to strongly underpin the action, signaling limited correction.
Wednesday’s action failed to close below pivotal Fibo support at 111.01 (61.8% of 109.71/111.82), which adds to signs that corrective action has bottomed.
Strong bullish momentum and flat stochastic at oversold zone border on daily chart support the notion.
The dollar showed limited reaction on Fed minutes, released on Wednesday, as US central bank signaled that will remain on pause for the rest of the year.
Some of US policymakers support the idea of possible rate hike in certain circumstances, but some pointed to scenario that interest rate could shift in either direction, according to the situation.
Further advance and strong bullish close today would generate initial signal of reversal, however, such scenario would require confirmation on return above 200SMA (111.49).
On the other side, strong bearish signal could be expected on penetration of thick daily cloud.
Res: 111.19, 111.30, 111.49, 111.82
Sup: 111.01, 110.84, 110.74, 110.51
