The Euro is consolidating within a narrow range in early Monday’s trading following last week’s almost 2% drop, sparked by hawkish Fed.
Friday’s close below key Fibo support at 1.1918 (61.8% of 1.1704/1.2266) added to bearish signals generated on break of other important technical supports.
Fresh bears found footstep just above the top of thick ascending weekly Ichimoku cloud (1.1833) with oversold daily studies suggesting corrective action before bears resume, as technical picture is negative and dollar is set to resume rally.
Broken Fibo support at 1.1918 and daily cloud base at 1.1942 offer solid resistances which should ideally cap correction, with key barriers at 1.1992/1.2000 (broken 200DM/psychological) expected to cap extended upticks and offer better selling opportunities, for push towards 1.1704 (Mar 31 low).
Only return and close above cloud top (1.2053) would neutralize bears.
Res: 1.1918, 1.1942, 1.1992, 1.2033.
Sup: 1.1833, 1.1795, 1.1737, 1.1704.
