Fresh easing of the US dollar in early US trading on Monday, obstructs again attempts to eventually break above multi-day congestion.
Fresh bulls from last Friday’s rally, which generated positive signal on bullish outside day, are still in play and underpinned by north-heading 10SMA, but lack stronger momentum.
Break above key barrier at 108.90 (Fibo 38.2% of 110.67/107.81, reinforced by falling 20SMA) is needed to generate bullish signal for stronger recovery.
On the other side, 10SMA marks initial support at 108.41, loss of which would weaken near-term structure, with extension below 108.16 (Thu/Fri lows) to shift near-term focus lower.
Directionless mode may extends as markets await signals from FOMC meeting on Wednesday.
Res: 108.72; 108.80; 108.90; 109.24
Sup: 108.41; 108.16; 108.00; 107.81
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