The Euro stands at the back foot in early European session trading on Tuesday and dips below 1.1300 handle, following Monday’s rally and eventual close above trendline resistance and multi-day range top that generated initial bullish signal.
Bulls extended through important Fibo barrier at 1.1325 (61.8% of 1.1422/1.1168) and hit two-week high at 1.1343, but failed to sustain gains.
Bullishly aligned daily studies support the action, with dip-buying favored while the price holds above 1.1270/65 (broken trendline resistance / broken Fibo 38.2% / 20DMA).
Repeated close above these levels would keep alive hopes of fresh attempts higher, which require close above 1.1325 Fibo barrier to signal continuation.
Caution on return and close below 1.1270/65 levels that would generate initial signal of false break higher.
Res: 1.1295, 1.1325, 1.1348, 1.1362
Sup: 1.1270, 1.1265, 1.1238, 1.1228