Bulls run out of steam after cracking key Fibo barrier
The Euro eases from new recovery high at 1.1338, posted on Wednesday after strong four-day rally from 1.1176 (2019 low).
Bulls show initial signs of stall as momentum reverses down after failing at the midline and stochastic entered overbought territory.
Wednesday’s action was capped by falling 30SMA and showed no benefit from bullish signal on marginal close above double-Fibonacci resistance at 1.1326 (38.2% of 1.1569/1.1176 / 61.8% of 1.1419/1.1176.
Profit-taking after strong advance in past four sessions could increase pressure for test of first significant support at 1.1292 (10SMA), where dips should be ideally contained to keep fresh bulls in play.
Pivotal support lays at 1.1276 (Fibo 38.2% of 1.1176/1.1338 recovery leg) and break here would sideline bulls, as larger picture remains negative.
Today’s repeated close above 1.1226 would confirm bullish bias for extension towards converged 55/100SMA’s (1.1365/69).
Res: 1.1326; 1.1338; 1.1369; 1.1382
Sup: 1.1311; 1.1292; 1.1276; 1.1257