The Euro extends consolidation above 1.09 support after bears faced strong headwinds here, but the upside remains limited despite Friday’s bullish close.
The pair ended last week in red (the second consecutive bearish weekly close) and hit lows last traded in early May 2017 that gives negative signal.
Daily studies are in bearish setup but negative momentum is pausing in sideways mode, while stochastic is emerging from oversold zone, suggesting extended consolidative/corrective phase before larger bears resume.
Pivotal barriers at 1.0983/91(Fibo 38.2% of 1.1109/1.0904/falling 10DMA) are expected to cap upticks and keep bears intact for renewed attack at 1.0900 zone and extension towards Fibo support at 1.0863 (76.4% of 1.0340/1.2555, Jan 2017/Feb 2018 ascend), violation of which would expose targets at 1.0570/00.
Only firm break above 10DMA would delay bears for extended correction but bearish bias will remain while corrective upticks hold below trendline resistance at 1.1030 (also Fibo 61.8% of 1.1109/1.0904/falling 30DMA).
German labor/inflation data are in focus today and expected to provide fresh signals
Res: 1.0952, 1.0967, 1.0991, 1.1010
Sup: 1.0929, 1.0900, 1.0863, 1.0839
