The Euro pulls back from new six-week high, as traders collected profits from a steep six-day rally, after the action was repeatedly capped by falling 100DMA and daily cloud top, while overbought daily studies contributed to the decision.
Dip below parity (to 0.9972) was so far short-lived, signaling that bullish sentiment remains strong, however daily stretched indicators (momentum and stochastic) are turning south, keeping in play risk of extend consolidation / correction.
Ability to hold above parity would signal strong bullish bias and keep in focus key barriers at 1.0088/1.0090 (10DMA / daily cloud top) clear break of which would signal bullish continuation and expose targets at 1.0172/97 (Fibo 76.4% of 1.0368/1.0535 descend / Sep 12 lower top).
Caution on close below parity (also near daily cloud base) and 0.9984 (Fibo 23.6% of 0.9631/1.0093) that would weaken near-term structure and revive risk of deeper pullback.
Dip below parity (to 0.9972) was so far short-lived, signaling that bullish sentiment remains strong, however daily stretched indicators (momentum and stochastic) are turning south, keeping in play risk of extend consolidation / correction.
Ability to hold above parity would signal strong bullish bias and keep in focus key barriers at 1.0088/1.0090 (10DMA / daily cloud top) clear break of which would signal bullish continuation and expose targets at 1.0172/97 (Fibo 76.4% of 1.0368/1.0535 descend / Sep 12 lower top).
Caution on close below parity (also near daily cloud base) and 0.9984 (Fibo 23.6% of 0.9631/1.0093) that would weaken near-term structure and revive risk of deeper pullback.