The Euro maintains a bullish tone on Monday and hits a one-week high, in an extension of Friday’s 0.55% advance.
Bullseye pivotal barriers at 1.2181/97 (May 11 upside rejection / Fibo 76.4% of 1.2349/1.1704) with a close above the latter to signal bullish continuation and expose next target at 1.2242 (Feb 25 spike high).
Daily studies are bullish and support the action, but last week’s close in Doji (although with long tail) strongly overbought weekly stochastic and fading bullish momentum continue to warn.
Near-term action is expected to remain biased higher while above important 1.21 support zone (broken Fibo 61.8% / 10DMA), but repeated failure to clear 1.2197 pivots would signal extended sideways mode but with increased downside risk.
Loss of 1.2100 handles and trendline support (1.2074) would weaken the near-term structure and add to signals of stall.
Res: 1.2181, 1.2197, 1.2242, 1.2300.
Sup: 1.2126, 1.2100, 1.2074, 1.2051.
