Euro saw limited ranges given multiple holidays Monday, and the lack of fresh incentive to take action. It is telling though that we have another long wick in the daily charts, this time with a substantially limited body. With very few data of note that directly impacts EURUSD we fall back to charts with the general expectation that the ECB is among the biggest dove among major central banks.
Resistance
- 1.08360 – 61.8 Fibonacci Retracement
- 1.08125 – Friday Spike High
- 1.07908/915 – Monday High / 50D Moving Average
Support
- 1.07586 – Intraday Consolidation Floor
- 1.07342 – Range Play Highs
- 1.06736 – Range Play Lows
Monday saw a very tight range and long daily wick though not quite signalling a bear market. Given the resistances immediate risk for us remains to be for weakness as we actually see bearish divergences from among daily oscillators and price. Consider a push under 1.07586 as an excuse to jump short looking to ease back into the pre-NFP consolidation. At this point we will consider going long coming off the said Range Play Lows at 1.06736.
