The Euro is constructive and edges higher in European trading on Thursday, but concerns about stall are mounting after the upside attempts were repeatedly rejected in past few days and capped by the upper 20-d Bollinger band.
Strongly overbought weekly studies and formation of weekly Doji candle contributes to possible scenario of bulls’ stall ahead of key barriers at 1.0930/1.10 zone (weekly cloud top / 50% retracement of 1.2349/0.9535 / psychological), though bullish structure on daily chart remains firm for now.
Immediate bulls are expected to remain intact while the action stays above rising daily Tenkan-sen (1.0762), while daily Kijun-sen marks lower pivot, loss of which would risk deeper pullback, although the correction will be seen as healthy while contained by the top of rising thick daily cloud (1.0519).
Bullish scenario, on the other hand, sees firm break through 1.10 resistance zone as a trigger for acceleration towards targets at 1.1227/74 (200WMA / Fibo 61.8% of 1.2349/0.9535downtrend).
Res: 1.0887; 1.0930; 1.0942; 1.1000.
Sup: 1.0762; 1.0736; 1.0685; 1.0610.