EURUSD – positive tone above 10SMA focuses next key barrier at 1.1753
The Euro moves within tight range in early Tuesday’s trading but maintains positive tone after bullish signal was generated on eventual close above falling 10SMA and Fibo 38.2% of 1.1996/1.1509 bear-leg on Monday.
Scope exists for renewed attack at 1.1753 pivot (falling 20SMA / Fibo 50% retracement) after Monday’s rally stalled on approach.
Sustained break higher would signal an end of near-term consolidative phase and continuation of recovery from 1.1509 (29 May low) towards next targets at 1.1810 (Fibo 61.8%) and 1.1840 (falling 30SMA).
Bull-cross of 5/10SMA’s and rising 14-d momentum support the notion, however, caution on sideways-moving low stochastic at the overbought zone boundary, which could signal extended consolidation.
Bullish outlook is expected to remain intact above 10SMA, while return and close below would soften near-term structure and risk fresh weakness.
Res: 1.1708; 1.1753; 1.1810; 1.1840
Sup: 1.1681; 1.1663; 1.1641; 1.1617