The pair is trading within narrow range in early Monday after repeated upside rejection at 109.83 on Friday, when 20SMA capped the action. Subsequent sharp fall on dollar’s disappointment after Yellen’s JH speech brought the pair back to the week-long range.
Break of either range boundary (108.60/109.83) is needed for clearer direction signal.
Negative dollar’s sentiment and bearish daily studies keep near-term bias at the downside, with break below 108.60 to generate bearish signal for test of key med-term support at 108.11 (17 Apr low).
Alternatively, sustained break above 109.80/110.00 zone would generate bullish signal for stronger correction.
Res: 109.40, 109.77, 109.83, 110.00
Sup: 109.02, 108.84, 108.60, 108.11
