The Euro stands at the back foot on Friday, holding within daily cloud and probing through strong supports at 1.2330 zone (converged 20/30SMA’s). Multiple upside rejections which left several daily candles with long upper shadows signaled lack of power to clearly break above 1.2400 barrier and extend upleg from 1.2215 (06 Apr low). Reversal signal is developing on daily chart, with firm break below a cluster of supports at 1.2337/30 (Fibo 38.2% of 1.2215/1.2413/20/30SMA’s) to open way towards next pivots at 1.2299/90 (12 Apr higher low/Fibo 61.8%) loss of which is needed to confirm reversal. Strong barriers at 1.2349/56 (broken 10SMA/daily cloud top) are expected to cap and keep fresh near-term bearish bias in play.
Res: 1.2337, 1.2349, 1.2356, 1.2400
Sup: 1.2314, 1.2299, 1.2290, 1.2261
