The euro stands at the front foot but conflicting signals warn
The Euro stands at the front foot in early Friday, as fresh bids emerge despite Thursday’s 100-pip drop after the price rose to one-week high (1.1917) on optimistic tone from the ECB.
Technical signals are conflicting as Thursday’s candle with small body and long upper shadow is negative signal, with long-legged Doji on weekly chart signaling strong indecision and north-heading daily indicators and series of higher lows on bounce from Wednesday’s low at 1.1752, send positive near-term signals.
Today’s fresh upside attempts struggle at 1.1842 resistance (converged 10/20DMA’s in attempt to form bear-cross and increase pressure).
Failure to clear this barrier would add to negative signals and keep the downside at risk.
Wednesday’s low at 1.1752 marks pivotal support which guards key supports at 1.1700 zone (lower boundary of larger 1.1700/1.2000 range).
Initial bullish signal could be expected on break above 1.1842, but bulls would need more action at the upside (close above Thursday’s spike high at 1.1917, also Fibo 61.8% of 1.2011/1.1752) to push the price into upper side of the range and open way for re-test of 1.20 barrier.
Res: 1.1842; 1.1851; 1.1881; 1.1917
Sup: 1.1810; 1.1797; 1.1752; 1.1711