EURUSD – daily cloud / 10SMA hold for now but the downside remains vulnerable
The Euro traded within tight range in Asia on Monday, showing no significant reaction on US strikes on Syria over the weekend.
The EURUSD pair maintains bullish bias at the beginning of the week, despite last week’s pullback to 1.2299, as repeated downside attempts were contained by 10SMA and repeatedly closed above thick daily cloud which continues to underpin.
Near-term action is in consolidative mode above the cloud top (1.2327), also Fibo 38.2% of 1.2215/1.2396 upleg and supported by rising 10SMA (1.2310), however, weak momentum studies keep in in play risk of fresh attacks at clout top / 10 SMA supports.
Clear break here would be bearish signal for further retracement of 1.2215/1.2396 upleg.
Close above 55SMA (1.2335) will be initial bullish signal, but regain of 1.2377 (tops of 12/10 Apr / Fibo 61.8% of 1.2476/1.2215 descend) is needed to neutralize bearish threats.
Res: 1.2335; 1.2345; 1.2377; 1.2400
Sup: 1.2327; 1.2310; 1.2299; 1.2284