EURUSD holds a constructive tone, though the thick descending daily cloud continues to act as a major obstacle

The Euro maintains a firm tone on Tuesday after the latest recovery pushed the pair to a two-week high at 1.1652, though the swift pullback that followed signaled strong upside rejection, reflected in a daily candle with a pronounced upper shadow.

The advance stalled just beneath the base of the daily Ichimoku cloud at 1.1666 and created a bull-trap above the 100DMA at 1.1642. Still, the near-term picture holds above the broken 61.8% Fibonacci retracement of the 1.1656/1.1490 leg at 1.1593, which softens immediate reversal risks.

Short-term structure remains tilted to the upside despite mixed technical signals, with the 55/100DMA bear-cross contrasting with a Tenkan/Kijun bull-cross, while the thick and descending daily cloud continues to exert pressure.

Bulls are again testing the cracked Fibonacci level at 1.1617 (76.4%), with the falling 55DMA at 1.1628 and the 100DMA at 1.1642 positioned just ahead of the cloud base at 1.1666 – a zone likely to generate further headwinds.

A break below 1.1593 would weaken the near-term structure, while a drop through the 1.1570 support area (broken 50% Fibonacci level and converged Tenkan/Kijun lines) would confirm a bearish reversal.

Res: 1.1628; 1.1642; 1.1655; 1.1666
Sup: 1.1593; 1.1570; 1.1550; 1.1520