Larger bulls to stay intact above daily Tenkan-sen
The Euro remains at the back foot in European trading on Friday, after Thursday’s drop and formation of bearish engulfing which weighs on near-term action.
Larger bulls lost traction on approach to pivotal Fibo barrier at 1.0746 (61.8% of 1.1494/0.9535), but the pullback was so far shallow and contained by daily Tenkan-sen (1.0589).
Immediate bias is expected to remain with bulls while Tenkan line protects the downside and signal narrow consolidation before larger bulls resume.
The pair is on track for bullish weekly close that supports the notion, however caution is required as weekly indicators are overstretched and falling weekly cloud continues to pressure (cloud base lays at 1.0782).
Watch daily Tenkan-sen as break here would risk deeper pullback and put bulls on hold for potential test of pivotal 1.0350 support zone (Fibo 38.2% of 0.9730/1.0736 upleg, reinforced by 200DMA).
Res: 1.0663; 1.0746; 1.0782; 1.0936
Sup: 1.0589; 1.0564; 1.0498; 1.0443