Bears are taking a breather above thick daily cloud
The Euro is consolidating above the top if thick daily cloud, which was cracked on today’s attempts to extend Monday’s strong fall (the pair was down 0.65% for the day).
Bears are taking a breather before fresh attempts lower as agreement between the US and China is creating negative environment for the EURUSD pair.
Firm break lower would expose strong supports at 1.1269 (Fibo 61.8% of 1.1181/1.1412) and 1.1260 (converged 100/30DMA’s), violation of which would risk further weakness.
Meanwhile, rising momentum and oversold stochastic suggest the pair may hold in extended consolidation, before bears resume.
Broken 20SMA (1.1299) caps consolidation for now, keeping immediate risk at the downside, however, extended upticks cannot be ruled out but should stay below broken 200DMA (1.1340) to keep bears in play.
Res: 1.1299; 1.1324; 1.1333; 1.1340
Sup: 1.1275; 1.1269; 1.1260; 1.1235