The dollar regained traction on positive news about US/Mexico trade conflict and opened with gap-higher on Monday, recovering all losses from last Friday, caused by disappointing US labor data.
Fresh advance probes above the top of five-day congestion , but faces strong headwinds from falling 10SMA (108.66) which so far capps upside attempts.
North-heading daily stochastic and RSI support but rising bearish momentum weighs and offsets positive signals. Sustained break above 10SMA would signal further recovery and expose Fibo barriers at 108.90 (38.2% of 110.67/107.81) and 109.24 (50% retracement, reinforced by descending 20SMA).
Conversely, failure to clear 10SMA would keep the pair within extended range and would increase risk of fresh attempts at recent lows at 107.80 zone.
Res: 108.66, 108.90, 109.24, 109.58
Sup: 108.36, 108.02, 107.81, 107.57
