EURUSD – recovery attempts need break above 1.23 pivot to sideline persisting downside risk
The Euro moved higher on Friday, in recovery attempt after broader bears were contained by rising 30SMA at 1.2212 on Thursday.
Initial sign of basing is seen on bounce from 1.2212, but recovery is still holding below 1.2300 pivot (former strong support – Fibo 38.2% of 1.1915/1.2537 rally), weighed by thick descending hourly cloud (spanned between 1.2297 and 1.2340)
Stronger recovery needs lift above hourly cloud and 10SMA (1.2368) to generate stronger bullish signal and confirm higher low formation.
However, weak momentum studies on daily chart (14-day momentum is attempting to break into negative territory) warn about recovery stall.
Stronger bearish signal could be expected on firm break below rising 30SMA which would open support at 1.2153 (Fibo 61.% of 1.1915/1.2537).
Res: 1.2300; 1.2331; 1.2368; 1.2404
Sup: 1.2240; 1.2212; 1.2153; 1.2089