EURUSD – bulls may take a breather on overbought studies but bias remains bullish

EURUSD

The Euro holds firm and consolidating under fresh high t 1.1779 (the highest since Jan 2015 and near the upper boundary of bull-channel) in early Monday’s trading.
Strong bullish signal has been generated on weekly close above pivotal barrier at 1.1735 (Fibo 38.2% of 1.3992/1.0340 descend), as the pair ended the third consecutive week positively and is on track for the fifth straight bullish month on steep recovery rally from 1.0500 zone higher base.
The rally approached another strong barrier at 1.1786 (weekly 200SMA), break of which is needed to confirm bullish continuation.
The pair is currently riding on the third wave of five-wave cycle from 1.0820) which could extend to its Fibo expansion levels at 1.1877 (FE 161.8%) and 1.1945 (FE 176.4%), on the way towards target at psychological 1.2000 barrier, also monthly Ichimoku cloud base.
Meantime, corrective pullback on overbought studies is seen as likely near-term scenario. Daily RSI and slow stochastic emerged from overbought territory and support the notion.
Rising 10SMA offers support at 1.1653, followed by daily Tenkan-sen / 4-hr cloud base at 1.1630, where dips should find footstep.
Extended pullback should be contained at 1.1530 zone (Fibo 38.2% of 1.1188/1.1776, reinforced by rising 20SMA) to keep bulls intact.

Res: 1.1776; 1.1800; 1.1877; 1.1945
Sup: 1.1700; 1.1653; 1.1630; 1.1612