Short-term bullish bias
Key levels: downside: 110.85/ upside: 111.44
The pair bounced back from the 109.60 support and is now testing the 30-day moving average. The immediate resistance on the daily chart can be found at 111.70, which suggests there is enough room on the upside.
The bullish MA cross on the 4H chart was an indication that the tide was turning to the bullish side in the short-term. Last night’s gap above the resistance of 110.95 was a stronger sign that buyers have taken control of the price action. On the hourly chart, the uptrend is clearly visible with the 30-hour moving average acting as a magnet and support to the rally. The RSI indicator remains in the neutral zone and we could see further upside.
The price could find more buying interests near the origin of the overnight gap. If it holds, an extended rally could send the price above 111.40.
