EURUSD – near term action positively aligned but overall picture remains bearish

Near-term action remains constructive and attempts on the upper side of four-week range, following repeated downside rejection at 1.1100 zone (reinforced by 200WMA).

Fresh positive momentum supports the action which requires clear break above 1.1237/47 (Monday’s peak / Fibo 23.6% of 1.1711/1.1104 descend) to generate initial bullish signal (base formation and reversal).

While the structure on daily chart shows slight bullish alignment and keeps in play hopes of stronger recovery, bears hold grip on larger timeframes and warn of scenario in which larger downtrend will resume after an end of current consolidation.

Firm break of 1.1100/30 zone (50% retracement of 1.0177/1.2082 / 20WMA) to signal continuation of larger downtrend from 1.2082 and expose targets at 1.1000/1.0950 (psychological / Fibo 61.8%).

Res: 1.1247; 1.1270; 1.1300; 1.1336
Sup: 1.1130; 1.1100; 1.1065; 1.1000