Bears are taking a breather after last week’s 1.8% drop
The Euro bounces from two-month low in European session on Monday, driven by fresh risk mode in the market, that lifted global stocks and deflates dollar
Larger bears are taking a breather as traders book some profits on last week’s 1.8% drop, with oversold daily studies contributing to corrective attempts.
Limited upside attempts could be anticipated following negative signal generated on weekly close below key 1.1700 support zone, as last week’s massive bearish candle weighs and threatens of deeper pullback from new 2020 high (1.2011).
Broken 1.1700 support now marks initial resistance with extended upticks expected to stall under barriers at 1.1743/54 (10/55DMA’s / daily cloud top), to offer better opportunity to re-enter bearish market.
Bears look for attempts towards key support at 1.1485 (38.2% retracement of Mar/Aug 1.0635/1.2011 / rising 100DMA) after correction is complete.
Only break and close above falling 20DMA (1.1790) would neutralize bears and shift near-term focus higher.
Res: 1.1662; 1.1700; 1.1754; 1.1790
Sup: 1.1612; 1.1589; 1.1566; 1.1485