The pair bounced above 111.00 handle after dipping to 110.77 low in Asia but struggles to firmly break above daily cloud top (111.23).
Near-term focus remains shifted lower after previous rally’s rejection at strong 112.10 barrier and subsequent weakness on profit-taking, accelerated by Fed.
While daily cloud caps upside attempts, risk of further weakness and retest of key supports at 110.62 (24 July low / daily cloud base) will remain in play, with break here to trigger fresh extension of larger downleg from 114.49.
Initial requirement for bearish resumption is close below 110.97 (Fibo 61.8% of 108.80/114.49 rally) after several probes below support proved to be false breaks.
Conversely, lift above daily cloud needs to regain minimum 111.74 (falling daily Tenkan-sen) to sideline immediate downside risk and open way towards key resistance at 112.10 barrier (Fibo 38.2% of 114.49/110.62 downleg / 200SMA).
Res: 111.33, 111.74, 111.95, 112.10
Sup: 110.77, 110.62, 110.23, 110.00
