Bearish bias below falling 20 DMA
The Euro edged higher in early European session trading on Tuesday following another failure to clearly break Fibo support at 1.0795 (76.4% of 1.0727/1.1017 upleg).
Recovery attempts were so far limited due to lack of momentum on 4-hr chart with near-term action being capped under pivotal barriers.
Flat momentum and RSI, MA’s in bearish setup and north-heading stochastic on daily chart add to unclear near-term direction signals.
Broken Fibo 61.8% level (1.0838) offers immediate resistance, followed by 20DMA (1.0851) and converged 10/30DMA’s (1.0865), with firm break here to generate bullish signal for stronger recovery.
Conversely, bears are expected to dominate while the price action holds below 20DMA, but the pair may hold in extended directionless mode before attacking pivotal supports at 1.0795 (Fibo) and 1.0766 (7 May low).
Res: 1.0838; 1.0851; 1.0865; 1.0892
Sup: 1.0795; 1.0766; 1.0727; 1.0700