Euro’s spectacular rally on Friday followed by a minor retreat on Monday and a rebound from near 50-DMA support in Asian session today amid bullish daily RSI and daily MACD suggests the stiff resistance around 1.12 could be finally breached, thus opening doors for 1.1236, which is confluence of 38.2% of 1.0463-1.1714 and 100-DMA.
On the other hand, failure to take out resistance zone of 1.1181-1.12 followed by a day end closing below 1.1128 (5-DMA + upper end of the channel) would signal bullish invalidation and open doors for a fresh sell-off towards 1.10 handle.
On the other hand, failure to take out resistance zone of 1.1181-1.12 followed by a day end closing below 1.1128 (5-DMA + upper end of the channel) would signal bullish invalidation and open doors for a fresh sell-off towards 1.10 handle.
