The Euro maintains firm tone and cracked pivotal barrier at 1.1718 (Fibo 61.8% of 1.1848/1.1508 bear-leg) in early Tuesday’s trading after generating bullish signal on Monday’s close above previous pivot, marked by 20SMA and converged daily Tenkan./Kijun-sen (1.1677).
Risk aversion on concerns about trade war continues to support Euro, but stronger hesitation at 1.1718 Fibo barrier could be anticipated.
Consolidation was so far held by strong support provided by broken 20SMA/4-hr cloud top (1.1685) which should ideally keep the downside protected and keep bulls intact.
Eventual break above 1.1718 would expose next key barrier at 1.1746 (weekly cloud top), violation of which would generate another strong bullish signal. Extended dips below 1.1685 need to be contained by strong supports at 1.1640 zone (converged 5/10SMA’s / 4-hr cloud base) to maintain bullish near-term bias.
Res: 1.1720, 1.1746, 1.1767, 1.1800
Sup: 1.1685, 1.1670, 1.1640, 1.1591
