EURUSD – deeper pullback or reversal?
The Euro posted new low at 1.2165 in early Thursday’s trading, but bounced back to 1.2200 zone, sidelining immediate downside risk.
Wednesday’s strong rejection above 1.2300 mark left big bearish daily candle with long upper shadow, completing Doji reversal pattern on daily chart and generating bearish signal for deeper correction.
However, strong support, provided by Fibo 38.2% of 1.1915/1.2323 upleg, keeps the downside attempts limited for now, splitting the possibilities of extended correction and reversal.
Underlying bulls keep focus at the upside and favor dip-buying strategy.
Strong bids lay at 1.2167 (Fibo 38.2%) and 1.2119/00 (daily Tenkan-sen / 10SMA).
Bearish scenario would activate on firm break below 1.2100.
Res: 1.2217; 1.2259; 1.2296; 1.2323
Sup: 1.2165; 1.2119; 1.2100; 1.2071