EURUSD regains traction but recovery faces strong headwinds

EURUSD found a footstep and firmed on Monday after 0.9% drop last Friday, following a double failure at psychological 1.10 barrier.

However, recovery is unlikely to extend much as near-term action is weighed by much weaker than expected German Ifo data and rising bearish momentum on daily chart.

Also, long upper shadow on last week’s candlestick and repeated failure to register a weekly close above 1.10 barrier, add to negative signals.

Slight bullish bias can be expected while the price holds above cracked Fibo pivot at 1.0900 (38.2% retracement of 1.0723/1.1009 upleg), but more work at the upside will be required (close above 1.0950) to sideline downside threats.

Caution on break of 1.0900 handle and nearby 20DMA (1.0875) which would risk deeper drop on completion of reversal pattern and a double-top (1.1009/03).

Res: 1.0942; 1.0965; 1.1000; 1.1017
Sup: 1.0900; 1.0875; 1.0866; 1.0832