EUR/USD outlook: Bulls take a breather but remain in play while daily cloud top contains dips
|EUR/USD
The Euro edges lower in early Monday’s trading as bulls enter consolidation after record 4% weekly advance last week.
Traders took some profits and overbought stochastic also points to consolidative / corrective action before bulls resume.
Strong bullish signal was generated on Friday’s close above pivotal barriers at 1.1066/80 (50% retracement of 1.1494/1.0635 / 200DMA).
Dips should find ground above daily clod top / psychological support (1.1008/00) to keep bulls in play for fresh push higher and attack at key Fibo barrier at 1.1166 (61.8% of 1.1494/1.0635).
Caution on extension below cloud top that would put bulls on hold, but return and close below double-Fibo supports at 1.0963/51 (broken 38.2% of 1.1494/1.0635 / 38.2% of 1.0635/1.1147) is needed signal an end of bull-phase from 1.0635.
Res: 1.1100; 1.1147; 1.1166; 1.1200
Sup: 1.1060; 1.1026; 1.1008; 1.0963
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