The pair regained traction after short-lived impact from North Korea’s missile launch as the price dipped to 109.54 overnight, where 10SMA contained dip. Subsequent swift recovery turned focus towards 111.00 barrier which was dented on Thursday’s rally.
Strong barriers lay at 111.00 zone, consisting of base of widening daily cloud and 100SMA. The pair shows scope for eventual break higher which would spark fresh bullish acceleration towards 111.64 (daily cloud top).
However, further hesitation at 111.000 zone could be anticipated as thickening daily cloud continues to weigh, along with overbought slow stochastic on daily chart. Extended consolidation between 110.00 and 111.00 could be expected in the near-term, with spikes lower to stay above 10 SMA and keep bulls in play. Stronger bearish signals could be expected on break below pivots at 109.61/54 (Fibo 38.2% of 107.31/111.00 recovery leg/10SMA.
Res: 110.90, 111.03, 111.13, 111.75
Sup: 110.41, 110.00, 109.54, 109.00
