Recovery accelerates but underlying bears warn of limited correction
The extends rebound from new 20-year low (0.9952) int second consecutive day, following failure to clearly break below parity level that left a hammer candle last Thursday and generated initial reversal signal.
The Euro was boosted by fresh risk appetite that deflated the dollar and a bear-trap under parity level, with lift above falling 10 DMA, adding to positive signals, which would be boosted by extension and close above pivotal Fibo barrier at 1.0205 (38.2% of 1.0614/0.9952).
Overall structure remains bearish and current move is seen as correction of larger downtrend, which is expected to provide better selling levels for renewed attack at parity.
Caution on failure to clear 1.0205 pivot that would generate an initial signal of recovery stall.
Res: 1.0175; 1.0205; 1.0283; 1.0311
Sup: 1.0108; 1.0078; 1.0000; 0.9952