Extension of Friday’s strong rally probes into thick daily cloud
The Euro probes into thick daily cloud on Monday, in extension of strong rally last Friday which completed Doji reversal pattern on daily chart.
Extended weakness of the dollar keeps the single currency supported, along with bullish techs, but bulls need close in the cloud (cloud base lays at 1.1724) and break above 1.1754 (triangle resistance), to generate bullish signal for recovery extension.
Risk of recovery stall exists as very thick falling daily cloud continues to weigh heavily and has already capped several attempts to break higher.
Broken 55SMA (1.1708) holds today’s action and marks pivotal support, loss of which would generate initial bearish signal.
Res: 1.1754; 1.1790; 1.1848; 1.1873
Sup: 1.1708; 1.1686; 1.1663; 1.1621