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Technical Outlook: EURUSD – Hourly Cloud Caps Consolidation Above Fibo Support At 1.0650

The Euro is trading in extended consolidation above cracked Fibo 61.8% support at 1.0650, but was so far unable to clearly break lower.

The upside remains capped by falling thick hourly cloud (spanned between 1.0670 and 1.0708) which maintains the pressure for final break below 1.0650 and test of next strong supports at 1.0622 (daily cloud top / 100 SMA) and 1.0583 pivot (daily cloud base) in extension.

Prevailing bearish tone favors this scenario, however, strongly oversold slow stochastic on daily chart warns of extended consolidation and possible stronger upticks.

Initial resistance lies at 1.0670 and guards strong barriers at 1.0700/08 (daily Kijun-sen line / hourly cloud top), which is expected to ideally cap extended upticks.

Only close above the latter would delay bears and signal stronger correction of 1.0905/1.0641 downleg.

Res: 1.0670, 1.0700, 1.0708, 1.0745
Sup: 1.0641, 1.0622, 1.0600, 1.0583

Windsor Brokers Ltdhttp://www.windsorbrokers.com/
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