EURUSD – fresh reversal signal still needs confirmation

Bears started to gain control on Wednesday after larger uptrend ran out of steam, leaving triple-Doji (Fri/Mon/Tue).

Fresh weakness cracked initial support at 1.1200 (round-figure / the floor of three-day congestion, with sustained break lower seen as minimum requirement for initial reversal signal.

Fresh bears eye Fibo support at 1.1171 (23.6% retracement of 1.0833/1.1275 upleg), violation of which would weaken near-term structure and expose key support at 1.1106 (Fibo 38.2% / rising 10DMA).

Near-term technical picture is still lacking clear direction signal as daily indicators are conflicting (strong positive momentum and MA’s in bullish configuration vs south-heading RSI and stochastic, emerging from overbought territory.

We look for break below 1.1171 Fibo level to boost fresh bears or return and close above 1.1200, which will ease downside pressure and signal prolonged sideways mode.

Res: 1.1240; 1.1275; 1.1325; 1.1380
Sup: 1.1171; 1.1106; 1.1095; 1.1054