The holds firm tone on Thursday and hits 110 barrier again, in extension of strong rally previous day. Full bullish setup of daily techs supports positive sentiment for eventual break above key barriers at 110.00/16 (psychological resistance/200SMA) to signal continuation of larger rally from 104.63 (26 Mar low). Close above 200SMA will be bullish signal for extension towards targets at 110.48/87 (02 Feb high/Fibo 61.8% of 114.73/104.63 Nov/Mar fall). Upbeat US inflation data (Apr CPI 0.3% f/c vs -0.1% prev, Core 2.2% f/c vs 2.1% prev) would boost the greenback for final break higher. Broken 10SMA offers support at 109.42, which is expected to contain dips, while return below Wednesday’s low (108.99) would generate initial bearish signal.
Res: 110.03, 110.16, 110.48, 110.87
Sup: 109.63, 109.42, 108.99, 108.70
