The Euro was slightly lower in early Monday, after repeated probe above the top of thin daily Ichimoku cloud at 1.0620 (reinforced by Fibo 38.2% of 1.0827/1.0492 descend) failed.
Friday’s strong rally which marked gains of over 1% left long bullish daily candle (the biggest one-day gain since 05 Jan), underpins bullish near-term structure for fresh attempts higher.
However, daily studies remain weak and keep the downside at risk. Lift above daily cloud (which is going to start widening on Tuesday), would face a cluster of barriers that may limit extended upside attempts.
Falling 30 SMA marks initial barrier at 1.0646, followed by daily Kijun-sen at 1.0660 and falling 100SMA at 1.0672.
Only sustained break higher would trigger extended retracement of 1.0827/1.0492 downleg.
On the downside, first pivot lies at 1.0572 (Fibo 38.2% of Friday’s rally), ahead of daily Tenkan-sen at 1.0560, close below which would generate stronger bearish signal.
Res: 1.0620, 1.0646, 1.0660, 1.0672
Sup: 1.0591, 1.0572, 1.0560, 1.0542
