The Euro moved within narrow range in early Monday’s trading after strong pullback from new multi-month high (1.1239) in past two days stalled at key supports at 1140 zone (10/200DMA golden-cross / Fibo 38.2% of 1.0981/1.1239) despite Friday’s spike to 1.1124.
Daily MA’s in bullish setup (reinforced by golden-cross) and rising bullish momentum support scenario of an end of corrective leg and reversal, however, falling stochastic and flat RSI conflict and keep the downside vulnerable.
Upbeat German Nov retail sales and German / EU PMI figures inflated the single currency, adding to positive signals.
Rising and thickening 4-hr cloud underpins near-term action which is pressuring barrier at 1.1182 (50% of 1.1239/1.1124 pullback / 4-hr Kijun-sen), with break higher to expose pivot at 1.1195 (Fibo 61.8%).
Close above the latter would generate reversal signal and shift near-term focus higher.
Res: 1.1182, 1.1195, 1.1200, 1.1212
Sup: 1.1168, 1.1157, 1.1154, 1.1140
