Bulls are taking a breather under new two-week high at 110.67, posted after Tuesday’s strong rally, which generated strong bullish signal on break and close above important Fibo barrier at 110.31.
The dollar benefited from risk mode driven by rising trade tensions between the US and China, which slightly eased after US eased restrictions on Huawei, but the sentiment remains fragile.
Traders booked some profits ahead of Fed minutes that keeps the dollar on hold but near-term bulls remain in play.
FOMC will release the minutes from last meeting and traders will look for hints whether the central bank will remain in line with broadly neutral stance that would keep the dollar supported, while dovish shift may cause stronger negative impact on the greenback.
Broken Fibo barrier at 110.31 now marks solid support which guards rising 5SMA (110.17) and pivotal 10SMA support (109.90) loss of which will be bearish.
Converged daily 20/100SMA’s on track to form bear-cross, weakening momentum and south-turning overbought stochastic work in favor of corrective action.
Res: 110.51, 110.71, 110.95, 111.04
Sup: 110.31, 110.17, 110.01, 109.90