The Euro remains constructive on Tuesday and probes again above 200DMA (1.1151) which capped the action in past three days. Strong upside rejection on Friday and repeated failures to break above 200DMA suggests that bullish tone is fading and risk of stall and fresh weakness remaining in play. Although positive momentum is rising and daily MA’s are in bullish setup, south-heading stochastic and Friday’s candle with long upper shadow weigh and partially offset bullish signals. Another close below 200DMA would add to negative signals but fall and close below rising 10SMA (1.1106) is needed to generate initial reversal signal. Conversely, close above 200DMA would provide relief, however, firm break above key barriers at 1.1200/08 (psychological / Fibo 61.8% of 1.1412/1.0878) is needed to signal bullish continuation.
Res: 1.1179, 1.1200, 1.1208, 1.1230
Sup: 1.1129, 1.1106, 1.1071, 1.1062
