EURUSD maintains positive near-term tone; eyes key barriers at 1.2018/46
The Euro stands at the front foot at the beginning of the week and attempts to extend recovery leg from last week’s low at 1.1822 (the lowest since 22 Dec).
Weaker dollar on fading expectations for more aggressive Fed’s approach to the interest rates in 2018, as recent weak data lowered the likelihood that Fed would hike rates more times this year than initially planned.
The Euro is firmly above falling 10SMA on Monday, which now acts as initial support at 1.1934 and probes into falling thick 4-hr cloud (spanned between 1.1951 and 1.2046), with sustained break of cloud base to look for test of key barriers at 1.2018 (200SMA) and 1.2046 (4-hr cloud top / Fibo 38.2% of 1.2400/1.1822 descend) break of which would generate reversal signal.
The signals from daily techs are still mixed as RSI and slow stochastic head north, but 14-d momentum turned sideways after rallying in past two days, however, a plenty of bullish signals on lower timeframe charts keeps the single currency supported for now.
Close above 10SMA is a minimum requirement for fresh bull’s extension towards 1.2018/46 pivots.
Conversely, fresh downside risk could be expected on fall and close below 10SMA.
Res: 1.1995; 1.2018; 1.2046; 1.2082
Sup: 1.1934; 1.1891; 1.1871; 1.1843