Thick daily Ichimoku cloud continues to limit recovery
Although the Euro stands at the front foot and continues to attempt higher, the recovery remains questioned, as thick daily cloud continues to limit the action for the sixth straight day, while falling 55 DMA (1.0614) additionally weighs.
Technical studies on a daily chart show still strong bearish momentum and mixed setup of moving averages (5,10,20,55), while daily cloud, spanned between 1.0596 and 1.0767, continues to strongly pressure the action that adds to stall signals.
Expect initial negative signal on return and close below 10DMA (1.0533), with drop below1.0469/56 (June 22 spike low / Fibo 61.8% of 1.0358/1.0614) to confirm lower top and shift focus towards key supports at 1.0358/49/40 (lows of June 15 / May 13 / 2017).
Only sustained break above 55DMA would strengthen near-term structure and generate initial signal of bullish continuation of recovery leg from 1.0358.
Res: 1.0614; 1.0623; 1.0685; 1.0700
Sup: 1.0577; 1.0533; 1.0517; 1.0486