The pair is trades within narrow range around 107 handle on Tuesday, awaiting Powell’s testimony for fresh signals.
Strong downside rejection on Monday (106.37) left long-tailed daily candle which suggests that fresh attempts above 107.00 cannot be ruled out.
Bullishly aligned near-term techs support the notion, but sustained break above 107.00 and regain of 107.31 (Fibo 61.8% of 107.90/106.37 downleg) is needed to confirm scenario and expose key barriers at 108 zone (21 Jan high / falling 20SMA).
Broken daily 10SMA (106.86) offers initial support and holds today’s action, keeping near-term bullish bias in play.
However, daily studies remain in firm bearish setup and maintain downside risk which could intensify on return and close below 10SMA.
Res: 107.19, 107.31, 107.54, 107.90
Sup: 106.86, 106.37, 106.10, 105.54
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