EURUSD rises for the third straight day, benefiting from weaker dollar on speculations of the magnitude of Fed’s rate cut on Wednesday.
Recovery leg from a higher base (formed after a double rejection just above psychological 1.10 support) retraced so far 61.8% of 1.1201/1.1002 pullback, adding to upside prospects.
Improved picture on daily chart (MA’s returned to bullish setup / RSI continues to head north above neutrality territory) supports the notion however, ascending 14-d momentum is still in negative territory and warning of potential recovery stall.
Daily close above Fibo 61.8% (1.1125) is needed to generate fresh bullish signal for attack at 1.1154 (Fibo 76.4% / Sep 6 spike high) break of which to neutralize downside risk and open way for full retracement of 1.1201/1.1002 correction.
Caution on failure at 1.1125 and return below 20DMA (1.1092) which would weaken near-term structure.
Res: 1.1129; 1.1154; 1.1184; 1.1201.
Sup: 1.1101; 1.1092; 1.1065; 1.1049.
