Bulls regain traction but overbought studies warn of consolidation


The Euro is holding in green in early Monday’s trading following Friday’s close in red (the first negative close after eight consecutive bullish days.
US NFP surprise temporarily inflated dollar but fresh optimism in the market that US recovery would pick up revive risk sentiment.
Friday’s failure to close above cracked 200WMA (1.1333) weighs on near-term action, along with overbought daily studies (stochastic emerged from overbought territory) as well as partial profit-taking ahead of strong resistance.
Bulls may consolidate before resuming with dips towards strong supports at 1.1224/21 (weekly cloud top / 100WMA) seen as positioning for fresh push higher.
Firm break of 200WMA would unmask key target at 1.1494 (2020 high, posted on 9 Mar).
Caution on break of 1.1224/21 pivot that may generate initial correction signal which would be confirmed on close below 1.1187 (Fibo 38.2% of 1.0870/1.1383).

Res: 1.1383; 1.1400; 1.1457; 1.1494
Sup: 1.1281; 1.1267; 1.1224; 1.1187