Euro eases from new three-week high as risk mode fades
The Euro eases on Monday as another failure in US stimulus talks and new records in coronavirus cases in Europe that triggered tighter measures, hurt risk sentiment.
The EURUSD pair advanced 0.62% on Friday and hit new recovery high at 1.1830, the highest in three weeks and completed the second week of strong gains.
Uptrend from 1.1612 (25 Sep low) remains intact with current action so far seen as positioning for fresh attempts higher.
Rising bullish momentum on daily chart and moving averages in positive setup support the notion.
Extended dips should find ground above 1.1760 zone (broken Fibo 38.2% of 1.2011/1.1612 / rising 10DMA which formed bull-cross with 20DMA) to keep bulls intact, as Friday’s close above 50% retracement of 1.2011/1.1612 was bullish signal.
Lift above 1.1858 (Fibo 61.8%) and daily cloud top (1.1870) is needed to confirm reversal and unmask key 1.20 zone.
Caution on loss of pivots at 1.1764/45 zone that would increase risk of formation of lower top deeper fall.
Res: 1.1811; 1.1830; 1.1858; 1.1870
Sup: 1.1780; 1.1764; 1.1747; 1.1725