The Euro eases from session high at 1.1474, showing again hesitation under 1.1500 resistance zone, following multiple upside rejections last week.
The pair was so far unable to capitalize on Friday’s strong rally, signaling extended trading within recent 1.1370/1.1489 range.
Bullish daily studies remain supportive for further upside, with extended dips expected to hold above strong support at 1.1400 (daily Tenkan-sen) and keep bulls intact for renewed attempts higher.
However, daily RSI / slow stochastic bearish divergence warn of deeper pullback, with increased downside risk seen on break below 1.1400 / 1.1370 (13 July low) pivots.
ECB’s policy meeting, due later this week is in focus, as traders will be looking for more hints about ECB’s next steps, as markets have understood recent comments from central bank’s president Mario Draghi as hawkish and initial signals of beginning of tightening monetary policy.
Current structure favors dip-buying scenario for extension of broader uptrend towards key barriers at 1.1614 and 1.1712 (May 2016 and Aug 2015 highs).
Alternatively, loss of 1.1300 support (05 July trough) would sideline bulls for deeper correction.
Res: 1.1474, 1.1489, 1.1500, 1.1527
Sup: 1.1423, 1.1400, 1.1391, 1.1370