The Euro stands at the back foot in early Monday’s trading, following Friday’s close in red after strong rejection at psychological 1.1800 barrier and failure to close above cracked 1.1780 Fibo barrier (38.2% of 1.2555/1.1300 descend).
Daily techs show MA’s in bullish setup and strong momentum, but RSI is flat and slow stochastic showing initial signs of reversal, together giving mixed signal.
Break of initial support at 1.1720 zone (former highs / rising 5SMA) would signal further easing and expose pivotal supports at 1.1683 (rising 10SMA) and 1.1660/55 (converging 100/20SMA), break of which would signal deeper pullback.
The single currency is expected to track British pound, however, consolidation with lower pace could be expected ahead of Wednesday’s FOMC meeting which could generate stronger direction signal.
Res: 1.1752, 1.1780, 1.1802, 1.1848
Sup: 1.1720, 1.1683, 1.1655, 1.1617
