EURUSD - Mild correction expected to precede fresh push lower
|The Euro started week positively and bounced above 1.06 barrier, following ten straight days in red that hit fresh nearly one-year low at 1.0567 on Friday.
The pair remains widely offered and mild recovery attempts are seen ahead of final attack at key supports at 1.0519 and 1.0461 (Dec / Mar 2015 lows).
Hourly Ichimoku cloud (spanned between 1.0633 and 1.0667) marks initial barrier that so far caped rallies (despite brief penetration into cloud).
Upticks should be ideally limited by hourly cloud, before strong bears resume. However, risk of extended correction exists, as stronger bounce on pre-holiday profit-taking cannot be ruled out. The notion finds support in oversold daily studies, but without clearer reversal signals for now.
Sustained break above hourly cloud would signal extended upticks that may stretch towards 1.0740 / 66 (Fibo 23.6% of 1.1298/1.0567 fall / falling 10 SMA). Only rally above 1.0849 (former low of 25 Oct / Fibo 38.2% retracement) would generate stronger bullish signal.
Res: 1.0648; 1.0667; 1.0700; 1.0740
Sup: 1.0567; 1.0519; 1.0500; 1.0461
Interested in EUR/USD technicals? Check out the key levels
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