EURUSD – bearish signal on penetration of daily cloud
The Euro holds bearish near-term bias and penetrates daily cloud after upbeat US GDP boosted dollar.
Extension through cloud top (1.2370) retraces 61.8% of 1.2241/1.2476 upleg and cracked converged 10/20/30SMA’s at 1.2340.
Close in the cloud today will be bearish signal which needs break below 1.2340/30 zone for confirmation.
Daily MA’s are exiting firm bullish setup; daily RSI and slow stochastic turned south and support negative scenario for further weakness through 1.2300 handle.
Broken cloud top marks strong barrier and needs to cap to keep fresh bears in play.
Res: 1.2357; 1.2370; 1.2421; 1.2446
Sup: 1.2330; 1.2300; 1.2285; 1.2241