The Euro is in recovery mode on Tuesday after strong fall on Monday was contained by rising daily Tenkan-sen which formed bullish-cross with Kijun-sen last Friday.
Recovery is underpinned by rising 4-hr cloud and probes above initial barrier at 1.1751 (broken 100SMA).
Bulls may extend towards 1.1785 (55SMA) which marks pivotal point for fresh attempts above psychological 1.1800 barrier and retest of daily cloud base (1.1812).
However, last week’s strong upside rejection on probe into daily cloud continues to weigh, along with thickening daily cloud, warning of possible repeated failure.
Downside risk is expected to remain in play while the price stays capped under 55SMA, with loss of lower pivot at 1.1720 (converged 10/30SMA’s) expected to generate fresh bearish signal for deeper correction of 1.1553/1.1859 bull-leg.
Weekly cloud twist in early Dec could attract stronger weakness.
Res: 1.1757, 1.1785, 1.1812, 1.1859
Sup: 1.1720, 1.1706, 1.1682, 1.1670
