Bears regain control after daily cloud limited recovery
The Euro accelerates lower on Monday after strong recovery last Thu/Fri (Friday’s advance was the biggest one-day rally in 2020), was limited by rising daily cloud.
Initial positive signal on Friday’s close above 1.1086/90 (Fibo 38.2% of 1.1239/1.0992 / daily cloud base) was neutralized by pullback which accelerated in early European trading, with fresh bearish extension pressuring pivotal support at 1.1056 (Fibo 38.2% of 1.0992/1.1095 upleg) and looking for further negative signal on break on daily close below here.
This would increase risk of stronger retracement of 1.0992/1.1095 and open way for renewed attack at 1.10 support, where bears were strongly rejected last week.
Res: 1.1068; 1.1086; 1.1090; 1.1111
Sup: 1.1056; 1.1031; 1.1000; 1.0992