US dollar strengthened post FOMC meeting. Fed said they expect economic conditions to evolve in a manner that will warrant further rate hikes.
After consolidating breach of slopping channel seen last week, the major failed to extend downside.
and Stochs have rolled over from oversold territory raising scope for upside.
Price action has broken above 5-DMA at 109.00 and is currently hovering around 23.6% Fibo.
Next bull target lies at 110.37 (nearly converged 38.2% Fib and 21-EMA) ahead of 20-DMA at 110.56.
On the downside we see immediate support at 5-DMA, breach there will see resumption of downside.
Focus now on nonfarm payrolls, ISM manufacturing PMI for further impetus.
Support levels - 109 (5-DMA), 108.60 (Aug 18 low), 108.26 (Aug 29 low)
Resistance levels - 109.57 (23.6% Fib 113.572 to 108.282 fall), 110, 110.37 (nearly converged 38.2% Fib and 21-EMA)
Good to go long on dips around 109.45, SL: 108.90, TP: 110/ 110.35/ 110.50.
Pair struggles at 20-DMA. Further upside only on break above.