The Euro pulled back to 1.0950 support zone in early Monday’s trading after hitting fresh six-month high at 1.1020 on opening.
Brief probe above psychological 1.1000 barrier on relief after Emmanuel Macron won French presidential election was so far short-lived, as trader took profits on larger Euro longs, on buy rumor sell fact scenario.
However, overall sentiment remains firmly bullish and additionally supported by comments from ECB official who said that recovery in the Eurozone is gaining traction.
Technical studies are bullish and supportive for further upside, with current pullback seen as positioning for fresh longs.
Initial support at 1.0950 (former two-week congestion top, reinforced by rising daily Tenkan-sen) is holding for now, followed by rising 10SMA at 1.0923, with strong support at 1.0900 zone where top of thick 4-hr cloud (1.0900/1.0815) is expected to contain pullback.
Only extended dips below 1.0850/30 (former congestion floor / 200SMA) would generate stronger bearish signal for deeper correction.
Res: 1.0995, 1.1020, 1.1067, 1.1100
Sup: 1.0950, 1.0923, 1.0900, 1.0874
