EURUSD – bulls pause but remain in play above thickening daily cloud
The Euro remains at the back foot at the start of the week and extends Friday’s 0.60% drop, which also formed a bearish engulfing pattern on daily chart.
Last week’s double failure under pivotal barrier at 1.0930 (Mar 23 spike high) and subsequent pullback, suggest that bulls lack strength for break higher, but current easing was so far limited, signaling that larger bulls remain in play.
Early Monday’s dip to 1.0788 was so far short-lived, with subsequent bounce above pivotal supports at 1.0832/27 (Fibo 23.6% of 1.0516/1.0930 / rising 10DMA) pointing to still strong bulls and suggesting possible scenario of consolidation preceding fresh push higher.
Near-term bias is expected to remain with bulls while the price action holds above key levels at 1.0771/57 (Fibo 38.2% / top of daily Ichimoku cloud) with thickening cloud offering significant support and underpinning near-term action.
Daily MA’s are in bullish setup and 14-d momentum remains positive, adding to positive signals.
Dip-buying above cloud top remains favored for now, with strong negative signal seen on break and close below cloud base (1.0710).
Res: 1.0871; 1.0930; 1.0951; 1.1000
Sup: 1.0788; 1.0771; 1.0757; 1.0710