EURUSD – bears to resume after limited consolidation
EURUSD is consolidating just above pivotal Fibo support at 1.0695 (76.4% of 1.0516/1.1275) in early Friday, as larger bears found temporary footstep here.
The pair is on track for the eight consecutive weekly close in red which reinforces overall bearish structure.
Daily chart shows 14-d momentum deeply in negative territory and moving averages in full bearish setup (double death cross of 5/200 and 10/200DMA have been formed), though oversold stochastic warns that bears may take a breather.
Partial profit-taking at the end of the week may also contribute to expected near-term scenario.
Persisting strong downside pressure suggests that consolidation should be limited and offer better selling opportunities.
Upticks should be capped under 1.0800 zone (falling 10DMA / broken Fibo 61.8%) to keep bears intact and offer better opportunities to re-enter bearish market.
Firm break of 1.0700/ 1.0695 (psychological / Fibo) to generate fresh bearish signal for extension towards 1.0635/11 (May 31 low / Fibo 38.2% of entire Sep 22 / July 23 rally from 1.0935 to 1.1275).
Res: 1.0766; 1.0789; 1.0806; 1.0822
Sup: 1.0695; 1.0667; 1.0635; 1.0611