The pair maintains firm tone, additionally boosted by fresh optimism on positive comments over trade talks from President Trump.
Bounce from 108.25 higher base reached Fibo 76.4% of 109.48/108.27 pullback and generated bullish signal on Tuesday’s break and close above 200DMA (108.92) which capped the action in past two weeks.
Bulls are underpinned by rising daily cloud and Tenkan-sen / Kijun-sen lines in bullish setup, but warning that recovery may lose traction comes from rising bearish momentum and overbought stochastic on daily chart.
Near-term action is expected to maintain bullish bias while holding above 200DMA, with firm break above 109.20 Fibo barrier to expose key obstacles at 108.36/48 Fibo 61.8% of 112.40/104.44 / 7 Nov high).
Caution on return and close below 200DMA which would generate initial signal of recovery stall and risk deeper fall.
A batch of data from the US, due later today, is eyed for fresh signals.
Res: 109.20, 109.36, 109.48, 110.00
Sup: 109.01, 108.92, 108.74, 108.62
