The Euro moves within tight range in early Tuesday’s trading but maintains positive tone after bullish signal was generated on eventual close above falling 10SMA and Fibo 38.2% of 1.1996/1.1509 bear-leg on Monday.
Scope exists for renewed attack at 1.1753 pivot (falling 20SMA / Fibo 50% retracement) after Monday’s rally stalled on approach.
Sustained break higher would signal an end of near-term consolidative phase and continuation of recovery from 1.1509 (29 May low) towards next targets at 1.1810 (Fibo 61.8%) and 1.1840 (falling 30SMA).
Bull-cross of 5/10SMA’s and rising 14-d momentum support the notion, however, caution on sideways-moving low stochastic at the overbought zone boundary, which could signal extended consolidation.
Bullish outlook is expected to remain intact above 10SMA, while return and close below would soften near-term structure and risk fresh weakness.
Res: 1.1708, 1.1753, 1.1810, 1.1840
Sup: 1.1681, 1.1663, 1.1641, 1.1617
