Windsor Brokers - Short Term Technical Analysis for Majors (07:00 GMT)

[WindsorBrokers]

EUR/USD
The risk on mode, established last Friday, continues to drive the bloc currency higher, on a bounce from 1.2160 zone double bottom. As important 1.2300 barrier has been cracked, though the price unable to hold gains due to overbought hourly conditions, corrective pullback is expected to precede fresh push higher. Initial support at 1.2270/60 zone, should ideally contain reversal, however, further easing towards 1.2240 area, 50% / 55 day EMA, is not ruled out. Indicators on 4h chart are attempting above the midlines and keep the upside in focus, but break above 1.2300 barrier, also 55 day EMA that turns sideways, is required to confirm and open way towards 1.2335, 10 July high and 1.2366, 05 July low / Fib 38.2% of 1.2691/1.2161 descend, to confirm near-term double bottom and trigger stronger recovery. The pair awaits ZEW releases from EU and Germany that are due later today and Bernanke