EURUSD – fresh attempts at daily cloud top
The Euro remains firm and probes above 1.1800 mark on Tuesday after Monday’s action formed outside day pattern, suggesting further advance.
Bulls tested initial barrier at 1.1810 (Fibo 38.2% of 1.1961/1.1717) and look for another attack at daily cloud top / 20SMA (1.1823) which was cracked on Monday’s spike to 1.1834, but subsequent pullback signaled strong upside rejection on first attempt through cloud top.
Fresh bullish acceleration on Tuesday improves techs on daily chart but sustained break above daily cloud is required to neutralize downside risk signaled by repeated strong upside rejections in past three days.
Lift above daily cloud would look for next pivotal barriers at 1.1862/67 (14 Dec spike high / Fibo 61.8% of 1.1961/1.1717 descend).
Expected increased downside risk on repeated failure to clear cloud top, with return below 10SMA (1.1779) which holds today’s action, to shift near-term focus lower.
German Ifo Business Climate data is the key event from the EU today, while US housing data will be in focus in American session.
Res: 1.1823; 1.1834; 1.1862; 1.1878
Sup: 1.1779; 1.1760; 1.1737; 1.1717