Bears are taking a breather after three-day fall started to lose traction in the middle of thick rising daily cloud.
Thursday’s action ended in green Doji candle after three long bearish daily candles, with rising momentum and stochastic turning north in oversold territory, adding to signals of adjustment.
Profit-taking at the end of the week could push the pair higher, however, limited upside action is likely to precede fresh push lower. Negative signals are developing on weekly chart as larger bulls are rapidly losing momentum and the Euro is on track for the biggest weekly fall since the last week of March.
Former pivotal supports at 1.1700 zone mark initial resistance ahead of more significant daily cloud top at 1.1753, with extended upticks expected to stay under descending 20DMA (1.1806) and keep fresh bears in play for deeper correction of 2020 rise and possible attack at key Fibo support at 1.1485 (38.2% retracement of Mar/Aug 1.0635/1.2011 rally).
Res: 1.1700, 1.1753, 1.1770, 1.1806
Sup: 1.1661, 1.1626, 1.1589, 1.1566