EURUSD – extended consolidation between cloud base and 100SMA seen as likely n/t scenario
Near-term bias remains negative following two-day fall after strong upside rejection deeply in the daily cloud and Friday’s recovery attempt stalling under cloud base.
Daily slow stochastic reversed from overbought territory and heads south, showing room for further downside.
The price may hold in extended consolidation between cloud base (1.1827) and key support at 1.1742 (Fibo 38.2% of 1.1553/1.1859 upleg reinforced by rising 100SMA), as daily MA’s remain in bullish setup and underpin.
Only firm break below 1.1742 would sideline near-term bulls for stronger correction of 1.1553/1.1859 upleg).
Bullish scenario needs sustained break above daily cloud (1.1827/1.1877) to resume steep recovery from 1.1553 (07 Nov low).
Res: 1.1827; 1.1859; 1.1877; 1.1886
Sup: 1.1756; 1.1742; 1.1723; 1.1706