Price continues to stay above the hourly moving averages
And that is helping to keep buyers in control of the pair still. The low today reached 110.84, which coincided with the low seen in November last year. There's also the 61.8 retracement level on the daily chart @ 110.85 to provide additional support in the region for the time being.
The key for sellers would be to move the pair towards a test of the 100-hour MA (red line) @ 110.74. A move below breaks the near-term bullish bias in the pair, but as long as price stays above it buyers will still be in control and the next directional move is still higher.
Yields are starting to settle down again with US 10-year yields now at 3.054% and that is helping to pin down the pair given the lack of developments elsewhere. The dollar was on a good run earlier yesterday, but saw gains retrace as we closed the day - and so far that sort of tepid sentiment is continuing into the new day too.
Equities are mixed once again as the short-term relief from US-China trade talks is starting to fade, and on the calendar front there isn't much else to go on for either currencies today. It will be more towards the flow once again.
Downside levels to watch out for will be the 110.84 level, followed by 110.74 and further support at 110.60. Following which will be the 200-hour MA support at 110.20, nearby is also the 200-day MA at 110.21.
Meanwhile, upside levels to watch out for will be the 18 January high at 110.48, followed by the 112.00 figure level and further resistance is seen at 112.33.
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