Bulls face headwinds at key barrier and may pause before resuming
The Euro edges lower in early European trading on Thursday, as rising US/Chine tensions hurt risk sentiment.
The single currency also faces headwinds from strong barriers at 1.1595/1.1600 (50% retracement of larger 1.2555/1.0635 descend / psychological) which were dented on Wednesday, but so far without clear break.
This gives space for positioning ahead of final break higher, with overbought daily stochastic / RSI, supporting the notion.
Dips should ideally find footstep above 1.1500 zone (round-figure / rising 5DMA) and keep intact lower pivots at 1.1438/22 (10DMA / former high of 10 Jun).
Only break of these supports would sideline bulls and allow for deeper pullback.
Larger bulls look for weekly close above 1.1600 zone that would signal bullish continuation and unmask key Fibo barrier at 1.1822 (61.8% of 1.2555/1.0635), as the pair is on track for the fifths straight bullish weekly close and for the biggest weekly gains since the last week of May.
Res: 1.1601; 1.1676; 1.1700; 1.1776
Sup: 1.1564; 1.1539; 1.1508; 1.1476