The Euro stands at the front foot on Monday and ticked above initial barrier at 1.2280 (Fibo 23.6% of 1.2522/1.2205 downleg. Initial signal of basing is developing on daily chart after near-term bears off 1.2522 repeatedly failed to clearly break below rising 30SMA and Friday’s action ended in Doji candle. Fresh attempts higher signal formation of reversal pattern which requires stronger upside and firm bullish close. Near-term price action is holding within thick hourly chart (1.2258/1.2309) with firm break above cloud needed to generate stronger bullish signal. Stronger reversal signal above cloud could be expected on break above daily Tenkan-sen (1.2363) which would confirm bullish near-term scenario and shift focus higher. Slow stochastic is attempting to reverse from oversold territory, adding on bullish signals, however, weakening 14-d momentum warns. Ascending 30SMA continues to underpin and marks initial support at 1.2237. Negative scenario sees increased downside risk on break below 30SMA and Friday’s low at 1.2205 which would signal extension of pullback from 1.2522 towards next pivotal support at 1.2153 (Fibo 61.8% of 1.1915/1.2537 upleg. Bigger picture shows formation of reversal pattern on weekly chart and growing risk of deeper correction as long bearish weekly candle that was left last week after sixth straight bullish weeks.
Res: 1.2280, 1.2309, 1.2326, 1.2363
Sup: 1.2237, 1.2205, 1.2153, 1.2089
 with firm break above cloud needed to generate stronger bullish signal. Stronger reversal signal above cloud could be expected on break above daily Tenkan-sen (1.2363) which would confirm bullish near-term scenario and shift focus higher. Slow stochastic is attempting to reverse from oversold territory, adding on bullish signals, however, weakening 14-d momentum warns. Ascending 30SMA continues to underpin and marks initial support at 1.2237. Negative scenario sees increased downside risk on break below 30SMA and Friday's low at 1.2205 which would signal extension of pullback from 1.2522 towards next pivotal support at 1.2153 (Fibo 61.8% of 1.1915/1.2537 upleg. Bigger picture shows formation of reversal pattern on weekly chart and growing risk of deeper correction as long bearish weekly candle that was left last week after sixth straight bullish weeks.){kind=link}