The Euro regained traction in early Monday’s trading after Friday’s close in red, and attacks again key Fibo barrier at 1.0578 (38.2% of 1.2266/0.9535) where the action was already rejected twice last week.
Daily studies maintain strong bullish momentum and the action was underpinned by a double golden-cross (10/200 & 20/200DMA’s) which supports bodes well for final push through cracked 1.0578 (Fibo) and 1.0590 (falling 55WM pivots, to signal bullish continuation and expose targets at 1.0786 (May 29 lower top) and 1.0901 (50% retracement of 1.2266/0.9535).
On the other hand, warning of possible rally stall comes from weekly chart, as stochastic is strongly overbought and bullish momentum is fading, along with last week’s Doji.
Rising 10 DMA offers initial support at 1.0491 which should hold to keep immediate bulls intact and guard 20DMA (1.0421) and 200DMA (1.0350) with loss of the latter to sideline bulls.
Res: 1.0590; 1.0615; 1.0700; 1.0782.
Sup: 1.0522; 1.0491; 1.0421; 1.0350.
