The pair rose in Asia on Monday as dollar remains bid on tempered expectations for stronger rate cut by Fed, but fresh gains were so far unable to hold gains above 108 barrier, reinforced by converged 10/20/30DMA’s at 108.06. Rising momentum on daily chart is about to break into positive territory and remains supportive, along with slow stochastics’ bullish divergence. Firm break above 108 zone is needed to confirm scenario and expose barriers at 108.31/57 (Fibo 61.8%/76.4% of 108.99/107.21 downleg). Softer near-term tone and increasing risk of fresh weakness could be expected on repeated failure to clear 108 barrier.
Res: 108.00, 108.10, 108.31, 108.57
Sup: 107.70, 107.53, 107.21, 106.78