The Euro eased to 1.1630 on Monday, after retesting Friday’s post ECB rally’s peak, but initial 1.1700 barrier stays intact for now. Dip was boosted by weaker than expected EU PMI numbers, but corrective pullback remains shallow, as weak dollar continues to underpin. Hourly studies remain in bullish mode, with rising hourly cloud (spanned between 1.1612 and 1.1577) offering solid support and underpinning near-term action. Overbought daily studies so far did not generate negative signal and keep downside threats minimized for now. Extended consolidation ahead of attack at key double-Fibonacci barriers at 1.1713/35 could be anticipated, as markets are looking for further signals from Fed on Wednesday. Extended dips would face good supports at 1.1564 (Fibo 38.2% of 1.1370/1.1684) and 1.1490 (Fibo 61.8%) which is expected to contain and prevent deeper dips on break here and 1.1454 (20SMA). Eventual break above 1.1713/35 pivots would trigger fresh upside for extension of current wave C (from 1.1312 trough) towards its FE 138.2% at 1.1770 and FE 161.8% at 1.1848.
Res: 1.1684, 1.1700, 1.1713, 1.1735
Sup: 1.1630, 1.1612, 1.1577, 1.1564
