Mounting concerns about crisis in Greece helped USD open with a gap up. The Index hit a low of 93.56 trading at 96.18. It faced the resistance at 96.40 20Wsma. The parallel resistance is seen at 96.55. We expect strong bullish momentum above 96.60 towards 96.90 initially and 97.70 later.
At today’s Asian session, data on the Japanese industrial and retail sales is due. Retail sales climbed to 3.0% beating expectations of 2.1%, but remains below the previous readings for 4.9%. The prelim industrial production output contracted to – 2.2% against 1.2% in the previous month.
Technical view: The pair hit a low of 122.13. The pair fell below the large ascending triangle after the opening bell, but managed to close above that in the four-hour chart. Intraday resistance is seen at 123.25, 123.45, and 123.70. The pair made a double top at 124.45. Bulls must take-off at the double top as soon as they can. In case the price closes below the ascending triangle, bears are likely to aim for 121.70 and 121.20. The 50Dsma is found at 121.80 and trend-change level remains at 120.80. Until the pair closes above 120.80, use every dip to buy. The 20Dsma is seen at 123.75. The weekly trading pattern is framed between 123.75 and 121.80. Either side close will deliver 124.45 and 125 or 121.20 and 121.00.
Intraday: Resistance is seen at 123.25, 123.55, and 123.70. Support is expected at 122.10, 122.00, and 121.80. Buying is available above 123.80 towards 124.00 and 124.40. Big moves loom at 124.50. Selling is available below 122.80 towards 122.50, 122.35, and 122.10.
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