The Euro holds in sideways mode and trading within tight range at the beginning of the week and sees little support from last Friday’s Hammer, formed after unsuccessful attack at triangle’s lower boundary.
Near-term price action remains heavily pressured by thick daily cloud (cloud base lays at 1.1678) and a cluster of daily MA’s (between 1.1663 and 1.1687), keeping immediate risk skewed lower, as negative momentum studies support the notion.
Scope for renewed attempt at pivotal supports at 1.1624 (triangle support line) and 1.1616 (Fibo 61.8% of 1.1508/1.1790) exists, with firm break lower needed to generate bearish signal and open way towards troughs at 1.1574 (19 July) and 1.1527 (28 June) which guard key support at 1.1508 (21 June low).
Meanwhile, the single currency may hold in directionless mode, awaiting releases of German labor and EU CPI data on Tuesday, as well as Fed’s rate decision, due on Wednesday, which could provide stronger direction signals.
Res: 1.1663, 1.1678, 1.1687, 1.1718
Sup: 1.1648, 1.1624, 1.1574, 1.1527
