Bulls broke through psychological 110 barrier and hit one-year high in early Tuesday and pressure monthly cloud base (110.51), violation of which would open way for Mar 2020 high at 111.71.
Rally from January low (102.59) accelerated strongly in March, with the pair being on track for the biggest monthly gains since November 2016.
The dollar continues to rise as traders extend short covering, also boosted by growing optimism about swift economic recovery and widening US-Japan interest rate differential in dollar’s favor.
Bullish studies on larger timeframes support the notion as last week’s break above 200WMA and formation of 5/200WMA golden-cross further underpinned the rally.
Broken Fibo 76.4% barrier (109.56) reverted to solid support, followed by former high at 109.36 (Mar 15) with extended downticks to find footstep at rising 10DMA (109.17) and keep bulls intact.
Res: 110.51, 110.68, 110.91, 111.28.
Sup: 110.00, 109.72, 109.56, 109.36.
