The 107 resistance level pushed the pair back towards the 200-period SMA as renewed US Dollar weakness remains a drag on the spot. Earlier today, Japan’s Q2 GDP saw a record contraction of -27.8%, however the pair barely moved as investors have already priced in the negative data. Bullish structure remains intact, however if 106.45 support is lost, then we could see further downside towards the 50-period SMA before bouncing back up.
Support: 106.45 / 106
Resistance: 107 / 107.50
