EURUSD – limited upside after Catalan relief; daily cloud top marks key barrier

The Euro moved higher in late Asian trading on Wednesday and hit new 12-day high at 1.1833, following overnight’s shallow 1.1825/1.1795 correction. The pair maintains positive sentiment from the previous day, with relief after Catalan leader Puigdemont postponed decision of declaring independence, giving fresh boost to the single currency.
However, no significant upside reaction of Euro was seen after decision, as the pair rallied earlier on Tuesday, boosted by upbeat German data and hawkish comments from ECB official.
Wednesday’s brief extension above previous day’s high faced headwinds at 1.1830 zone (Fibo 38.2% of 1.2092/1.1669 bear-leg /20/55SMA bear-cross / 29 Sep high) and may pause the rally while the latter caps, as slow stochastic on daily chart is entering overbought territory.
Overall bearish picture on daily chart sees 1.1830 zone as ideal reversal point for corrective rally from 1.1669 (06 Oct low), but recovery may extend on sustained break above 1.1830.
Near-term bulls need lift above daily cloud top (1.1893) to neutralize downside risk and signal bottom at 1.1669.
Broken daily Tenkan-sen marks the lower pivot at 1.1751, loss of which would re-focus lows at 1.1669/62.

Res: 1.1833; 1.1880; 1.1893; 1.1930
Sup: 1.1755; 1.1770; 1.1751; 1.1720

eur