The Euro remains bid in early Tuesday’s trading and pressures again pivotal 1.1400 resistance zone (Fibo 61.8% of 1.1472/1.1267/trendline resistance/highs of 29/30 Nov), after Monday’s action ended in long-legged Doji and signaled indecision.
The dollar stands at the back foot on risk appetite, sparked by trade conflict ceasefire agreement. Fresh advance is positive signal, but the pair is still holding within near-term range and heavy under 1.1400 pivot.
Repeated failure to break higher would keep near-term directionless mode, but would also signal that the downside is still vulnerable. Sideways-moving momentum and slow stochastic support the notion, but bullishly aligned 10,20,30SMA’s maintain bid tone.
Break above 1.1400 resistance zone would improve near-term structure and expose next key barriers at 1.1461 (55SMA) and 1.1472 (20 Nov high).
Conversely, initial bearish signal could be expected on rejection at 1.1400 barriers and return below converged 10/20SMA’s (1.1353) which would unmask Friday’s low at 1.1305 and trendline support at 1.1289, break of which will be bearish.
Res: 1.1393, 1.1400, 1.1433, 1.1444
Sup: 1.1369, 1.1350, 1.1305, 1.1289
