The Euro dipped to 1.0850 support (former congestion low/Fibo 38.2% of 1.0568/1.1020 downleg) on Wednesday, on three-day fall following upside rejection at 1.1020.
Support is holding for now, with Wednesday’s Doji and today’s acceleration higher, seen as initial reversal signal.
Such scenario requires break and close above 10SMA (1.0910) for confirmation, as notion is supported by strongly oversold slow stochastic and underpinned by 20/200SMA Golden Cross.
Otherwise, risk would remain shifted to the downside while recovery stays capped under 10SMA.
Violation of plethora of strong supports between 1.0850 and 1.0825 would generate stronger bearish signals and risk filling the gap of 24 Apr for stronger retracement of 1.0568/1.1020 upleg.
Res: 1.0896, 1.0910, 1.0932, 1.0950
Sup: 1.0850, 1.0825, 1.0794, 1.0777
