Published: 7/22/2015 3:21:00 AM
The Euro bounced strongly yesterday, leaving long bullish daily candle that came after previous day’s long-legged Doji and signals stronger correction. Bullish acceleration reached 1.0967 high, also Fibonacci 38.2% retracement of 1.1215/1.0807 downleg, where rally was capped by descending daily 10SMA. Improved near-term technicals favor further recovery, however, overall bearish structure remains intact. Further upside to face strong obstacles at 1.0992, daily Ichimoku cloud base and 1.1033, falling daily 20SMA. Only break and close above the latter would neutralize scenario of lower top formation and fresh leg lower. Asian trading was entrenched within narrow range, with range bottom at 1.0923, marking initial support, ahead of previous barrier at 1.0900, also near 38.2% of recovery rally from 1.0807. Break here to signal an end of recovery phase.
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