EUR/USD

Currently trading at – Above 1.06300

Resistance: 1.0663; 1.0746; 1.0782; 1.0936.
Support: 1.0589; 1.0564; 1.0498; 1.0443.

The Euro remains on the back foot in European trading on Friday, after Thursday’s drop and formation of bearish engulfing which weighs on near-term action.

Euro seemed under a bit of pressure in European trading on Friday after forming of bearish engulfing on Thursday that weighs on near-term action.

Larger bulls couldn’t hold on to the traction on the approach to 1.0746, which was the pivotal fibo barrier, however, the pullback was not that deep and contained by daily Tenkan-sen (1.0589)

It is expected that the immediate bias would remain with bulls whereas Tenkan line protects the downside and indicates a narrow consolidation before larger bulls resume.

Supporting the notion, EUR/USD seems to be on its way to a bullish weekly close, but traders must practice caution because weekly indicators are overstretched with the pressure of failing weekly cloud (cloud base is at 1.0782).

Traders must keep a close eye on the daily Tenkan-sen, as a breakout here would risk a deeper pullback and would place bulls on hold for a test of pivotal 1.0350 support zone (fibonacci 38.2% of 0.9739/1.0736 unpleg, backed by 200DMA)