The Euro eased in Asia, following repeated rejection near 1.0800 barrier (Friday/today), as falling 100SMA continues to cap (past four days trading repeatedly closed below 100SMA). Near-term action is holding within 1.0720/1.0800 congestion, trading between daily Tenkan-sen and 100SMA, without clear near-term direction. Last week’s strong upside rejection at daily cloud top generated negative signal, with loss of daily Tenkan-sen pivot (currently at 1.0723), needed for stronger bearish signal. Slow stochastic is turning lower from overbought zone and supports scenario along with daily studies that are losing traction. Firm break below 1.0700 zone is needed to complete asymmetric H&S on hourly chart and trigger fresh acceleration lower. Meantime, expect extended congestion while daily Tenkan-sen holds. Break above layers of strong barriers (falling 100SMA / daily cloud top/upper 20d Bollinger band is needed to activate bullish scenario for extension of the upleg from 1.0339 (03 Jan low).
Res: 1.0796, 1.0810, 1.0824, 1.0872
Sup: 1.0746, 1.0723, 1.0710, 1.0656
