The Euro extended weakness in early Monday’s trading, following Friday’s close in red, but dip found footstep at 1.1538 (just below daily cloud base / Fibo 38.2% of 1.1432/1.1610 upleg).
Profit-taking after strong rally last Wed/Thu was so far seen as corrective action, as pullback failed to clearly break below daily cloud and fresh recovery attacks daily cloud top (1.1574).
Close above cloud is needed to revive bullish bias, however, plethora of MA barriers which lays ahead, marks significant obstacles, starting with 55SMA (1.1587), then converged 20/30SMA’s / Friday’s top (1.1610/13) and 100SMA (1.1626).
Break through these barriers is needed to signal continuation of recovery leg from 1.1432 (09 Oct spike low).
On the other side, daily techs remain weak and warn of fresh weakness, as bearish momentum continues to strengthen and slow stochastic turned sideways on the border of overbought zone, warning of reversal.
Negative scenario, requires close below daily cloud to generate negative signal for extension through 10SMA (1.1526) towards next pivotal support at 1.1500 (round-figure / Fibo 61.8% of 1.1432/1.1610 upleg).
Neutral near-term tone could be expected while the price holds within daily cloud.
Res: 1.1574, 1.1587, 1.1613, 1.1626
Sup: 1.1545, 1.1538, 1.1526, 1.1500
