EURUSD – rally takes a breather ahead of attack at strong 1.0825 barrier
|Three-day advance from 1.0587 is taking a breather under 1.0770 barrier (upper Bollinger band) where rally faced first significant barrier.
Correction lower is expected on overbought conditions, with strong supports at 1.0705/00 (double Fibo 38.2% / rising 5SMA), expected to ideally contain and guard next pivot at 1.0670 (rising daily Tenkan-sen).
Scenario of final push towards target at 1.0825 (top of thickening daily cloud / falling 100 SMA) looks likely and is supported by bullish daily studies, with sustained break here expected to trigger further advance and expose 1.0931 (Fibo 61.8% of 1.1298/1.0339 downmove).
Conversely, extended dips below 1.0670 would risk extension to daily cloud base (currently at 1.0611), loss of which will generate stronger bearish signal.
Res: 1.0770; 1.0825; 1.0872; 1.0931
Sup: 1.0727; 1.0700; 1.0670; 1.0611
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