Risk of recovery stall while pivotal Fibo barrier caps
The Euro is consolidating under pivotal Fibo barrier at 1.0967 (38.2% of 1.1109/1.0878) in early Thursday’s trading.
Two-day recovery from new over two-year low at 1.0878 (sparked by weaker than expected US Manufacturing and private sector employment data that deflated dollar) was repeatedly capped by 1.0967 barrier (reinforced by falling 10DMA).
Initial signal of recovery stall could be expected while the price remains under this significant resistance, as rising bearish momentum and daily Tenkan-sen/Kijun-sen lines in strong negative setup support scenario.
Violation of initial support at 1.0934 (5DMA) would generate fresh negative signal and risk further easing towards psychological 1.0900 support and Wednesday’s low (1.0878) and open way for final attack at key Fibo support at 1.0863 (76.4% of 1.0340/1.2555 ascend).
Break and close above 1.0967 pivot would sideline immediate downside threats and signal further retracement of 1.1109/1.0878 bear-leg.
Res: 1.0956; 1.0967; 1.0998; 1.1014
Sup: 1.0934; 1.0900; 1.0878; 1.0863