Strong bullish acceleration in early Monday’s trading sidelined immediate downside risk after last Thu-Fri weakness was contained by daily Ichimoku cloud at 1.2442.
Fresh rally probes above strong barrier at 1.2525 (daily Tenkan-sen) would trigger extension towards next pivot at 1.2580 (last week’s high / near Fibo 61.8% of 1.2704/1.2345 downleg).
Improving near-term technicals are supportive, together with bullishly aligned dailies, with daily close above Tenkan-sen to confirm bullish near-term stance.
Focus is expected to stay shifted at the upside while daily cloud holds, with sustained break above 1.2580 to confirm higher low at 1.2438 (Friday’s low) and signal further upside.
Conversely, increased downside risk could be expected on penetration into thickening daily cloud (currently spanned between 1.2399 and 1.2442).
Res: 1.2548, 1.2567, 1.2580, 1.2620
Sup: 1.2495, 1.2454, 1.2442, 1.2403
