The EURUSD edges lower in early Thursday’s trading, holding in extended consolidation under pivotal Fibo barrier at 1.1671 (38.2% of 1.1909/1.1534 bear-leg) which provided significant headwinds to recovery leg from 1.1524 (Oct 12/13 lows).
The near-term bias remains with bulls, but a firm break of 1.1671 Fibo barriers is needed to confirm the reversal signal on the weekly chart (double rejection at weekly cloud base/200WMA) and extend recovery towards 1.1712/16 (falling 55DMA/50% retracement of 1.1909/1.1524).
Rising 10DMA (1.1597) is approaching 20DMA (1.1608) in an attempt to form a bull-cross and further support the advance, with 1.1600 zones offering solid support which should contain dips.
Res: 1.1671, 1.1695, 1.1716, 1.1755.
Sup: 1.1626, 1.1608, 1.1597, 1.1571.
