Bulls remain underpinned by rising 10 DMA, eye 1.22 barrier
The Euro opened with gap higher on Monday signaling that bulls remain in play after Friday’s / weekly close in red.
Risk sentiment on vaccine hopes keeps the euro inflated for renewed attempt at psychological 1.22 barrier.
Near-term action remains underpinned by rising 10DMA, which tracks the advance since early Nov and contained last week’s pullback from new 2 ½ week high (1.2177), although long upper shadows of last week’s daily candles, signal that bulls face headwinds.
Also, weaker bullish momentum on daily chart warns of extended consolidation before bulls resume.
Rising 10DMA offers immediate support at 1.2112, which should ideally hold, with potential deeper dips to find footstep above last Wednesday’s correction low (1.2058) and keep bulls intact.
Caution on break here and 1.2041 (Fibo 23.6% of 1.1602/1.2177 / bull-trendline off 1.1602) which would put bulls on hold for deeper pullback.
Res: 1.2162; 1.2177; 1.2200; 1.2261
Sup: 1.2112; 1.2072; 1.2058; 1.2041