The Euro is holding within tight range above cracked Fibo support at 1.1778 (76.4% of 1.1602/1.2349) in early Monday’s trading as bears take a breather after failure to register weekly close below this support.
Initial signs of bear-trap formation and oversold daily stochastic support the idea of limited correction which is expected to offer better selling opportunities.
Daily techs in full bearish setup weigh on the single currency and potential upticks to stall at strong resistance zone between 1.1835 (former low of Mar 9) and 1.1860 (converged 200/100DMA on track to form death-cross).
Firm break of 1.1778 pivot to signal extension of pullback from 1.2349 (2021 high) and expose key supports at 1.1694 (Fibo 38.2% of Mar 2020 / Jan 2021 1.0635/1.2349 rally) and 1.1600 zone (Sep/Nov 2020 higher base / weekly cloud top).
Res: 1.1805, 1.1835, 1.1860, 1.1887.
Sup: 1.1778, 1.1761, 1.1694, 1.1639.
