Bulls need repeated close above trendline resistance to confirm break
The Euro stands at the back foot in early European session trading on Tuesday and dips below 1.1300 handle, following Monday’s rally and eventual close above trendline resistance and multi-day range top that generated initial bullish signal.
Bulls extended through important Fibo barrier at 1.1325 (61.8% of 1.1422/1.1168) and hit two-week high at 1.1343, but failed to sustain gains.
Bullishly aligned daily studies support the action, with dip-buying favored while the price holds above 1.1270/65 (broken trendline resistance / broken Fibo 38.2% / 20DMA).
Repeated close above these levels would keep alive hopes of fresh attempts higher, which require close above 1.1325 Fibo barrier to signal continuation.
Caution on return and close below 1.1270/65 levels that would generate initial signal of false break higher.
Res: 1.1295; 1.1325; 1.1348; 1.1362
Sup: 1.1270; 1.1265; 1.1238; 1.1228