The Euro bounced above 1.19 handle in European session on Monday, following gap-lower opening and retest of Friday’s low (1.1874), as strong fall of Turkish lira following surprise replacement of the central bank governor over the weekend, shook the markets on Monday’s opening.
Despite the near-term action remains biased lower, bears lacked strength to finally register a weekly close below important Fibo support at 1.1887 (61.8% of 1.1602/1.2349) after several unsuccessful attempts.
This produces headwinds to bears, along with rising 200DMA (1.1846), keeping the pair at the lower side of the range that extends into the third week.
Daily techs in negative setup and rising bearish momentum on weekly chart keep the downside vulnerable, with clear break of 1.1887 and violation of pivots at 1.1846/35 (200DMA / Mar 9 low) to risk bearish acceleration and expose next strong support at 1.1694 (Fibo 38.2% of 1.0635/1.2349, Mar 2020/Jan 2021 rally).
Bears are expected to remain intact while the upticks stay capped by 10DMA (1.1929) with break here to signal extended sideways mode.
Only break of near-term congestion ceiling (1.1988) and psychological 1.20 barrier would neutralize bears and shift focus higher.
Res: 1.1929, 1.1951, 1.1967, 1.1988
Sup: 1.1887, 1.1874, 1.1846, 1.1835
