EURUSD – conflicting signals persist as the pair trades within the daily cloud

The Euro stayed under pressure on Monday, though losses remained limited, following Friday’s sharp upside rejection that left a bearish daily candle with a long upper shadow and created a bull-trap at the top of the daily cloud, signaling initial weakness.

The daily chart reflects mixed technical signals, with moving averages in conflicting formation, negative momentum, and the price holding within the daily Ichimoku cloud (spanned between 1.1600 and 1.1685) while trading above the broken Tenkan-sen at 1.1635 for the third consecutive session, highlighting the current lack of clear direction.

Markets await new catalysts, including gold’s renewed recovery after its recent pullback and the return of risk aversion, with attention also turning to Friday’s US inflation data (subject to government reopening), which may provide fresh directional cues.

A break below the Tenkan-sen would generate initial bearish signals, with a sustained move beneath the cloud confirming further downside pressure. Conversely, a close above the cloud top would revive bullish sentiment and open the way towards 1.1730 (daily Kijun-sen / 50% retracement of the 1.1918–1.1542 decline).

Res: 1.1685; 1.1700; 1.1730; 1.1774
Sup: 1.1635; 1.1600; 1.1555; 1.1542