Probe above cloud top is positive signal but risk of recovery stall still exists
Strong recovery from 1.0989 (14 Nov low) where bears were trapped at Fibo 61.8% level, extends into third straight day.
Early Monday’s advance cracked key barriers at 1.1060/64 (daily cloud top / double Fibo barrier) but needs firm break higher to signal reversal and open way for further gains towards 1.1082 (20DMA (50% retracement of 1.1175/1.0989) and 1.1104 (Fibo 61.8%) in extension.
Improved sentiment underpins, however, daily techs warn of recovery stall as momentum is flat and in negative territory, while stochastic is about to break into overbought zone.
Converged 10/55DMA’s (1.1038) mark solid support, loss of which would generate an initial signal that recovery phase is over.
Res: 1.1067; 1.1082; 1.1094; 1.1104
Sup: 1.1048; 1.1038; 1.1015; 1.0993