The pair failed to clear strong 113.50 barrier for the third time, as Wednesday’s spike to 113.68 high was short-lived. Long-legged Doji candle was left on Wednesday, signaling strong indecision, however dips remain limited and contained by rising 7SMA for now.
Near-term action is holding within 112.80/113.68 range and awaiting stronger direction signal which would be generated by a number of important US data due today and Friday.
Studies on daily chart are bullish while overbought slow stochastic warns of correction (the indicator was holding within narrow range, in and out of overbought zone but without firmer bearish signal for now.
Initial signal of pullback will be generated on sustained break below 112.80 (base of three-day congestion) and violation of rising 10 SMA at 112.55 (also Fibo 23.6% of 108.80/113.68 upleg) for extension towards strong support at 111.80 (Fibo 38.2% / 100SMA) break of which will confirm reversal.
At the upside, eventual close above 113.50 pivot would signal bullish continuation towards 114.00 and 114.36 targets.
Res: 113.50, 113.68, 114.00, 114.36
Sup: 113.05, 112.80, 112.55, 111.80
