The Euro bounced above 1.0700 handle, on consolidation of steep and uninterrupted 8-day fall that hit fresh low at 1.0665 on Wednesday, levels last traded in December 2015.
Rally is so far holding under fist strong resistance at 1.0745 (hourly cloud base, reinforced by falling 5SMA) which guards significant barriers at 1.0815 (Tuesday’s high / Fibo 23.6% of 1.1298/1.0665 fall) and 1.0849 (former low of 25 Oct).
Overall strong bearish structure favors further weakness, with upticks seen as selling opportunities and correction expected to be ideally capped under 1.0815 barrier.
Yesterday’s close below 1.0700 generated another bearish signal for extension of recent downtrend that may stretch towards very strong supports at 1.0500 zone.
Series of long bearish candles maintain negative sentiment, as 09 Nov daily candle with very long upper shadow, continues to weigh on near-term structure.
Alternative scenario requires firm break above 1.0849 trigger to sideline immediate bulls for extended corrective phase.
Res: 1.0745, 1.0815, 1.0849, 1.0900
Sup: 1.0665, 1.0600, 1.0550, 1.0519
EURUSD - Corrective Bounce Is So Far Holding Below Hourly Cloud, Sentiment Remains Negative
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